{"id":112696,"date":"2023-09-10T13:04:00","date_gmt":"2023-09-10T17:04:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=112696"},"modified":"2023-09-11T13:04:52","modified_gmt":"2023-09-11T17:04:52","slug":"affordable-housing-crisis","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/affordable-housing-crisis\/","title":{"rendered":"Can the Affordable Housing Crisis Be Solved With Rent Control?"},"content":{"rendered":"\n<p>Would rent control protocols help solve the affordable <a href=\"https:\/\/www.shortform.com\/blog\/us-housing-shortage\/\">housing crisis<\/a>? What is rent control and why is it so controversial?<\/p>\n\n\n\n<p>Years of soaring rents have led some Democrats to call on the White House to implement national rent control regulations. Supporters argue that national rent control is urgently needed. Critics contend that federal rent control rules would harm renters, landlords, and communities<\/p>\n\n\n\n<p>Keep reading to learn more about national rent control.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-affordable-housing-crisis-in-the-us\">The Affordable Housing Crisis in the US<\/h2>\n\n\n\n<p>US rents have skyrocketed nationwide, jumping <a href=\"https:\/\/www.wsj.com\/articles\/nationwide-rent-control-congress-democrats-progressives-housing-president-biden-11674233540\" target=\"_blank\" rel=\"noreferrer noopener\">nearly 18%<\/a> in 2021 and another 4% last year. The median rent now exceeds $2,000 per month, causing an affordable housing crisis. In response, Democrats have urged President Biden to enact nationwide rent control regulations\u2014but experts warn that such measures could <a href=\"https:\/\/www.nahb.org\/-\/media\/NAHB\/advocacy\/docs\/industry-issues\/rent-control-coalition-letter-081023.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">worsen the problem they seek to solve<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-rent-control\"><strong>What Is Rent Control?<\/strong><\/h3>\n\n\n\n<p>&#8220;Rent control\u201d refers to laws that <a href=\"https:\/\/www.forbes.com\/sites\/brendarichardson\/2023\/03\/23\/national-apartment-association-study-finds-that-rent-control-is-not-the-solution-it-appears-to-be\/?sh=67e58afc59f0\" target=\"_blank\" rel=\"noreferrer noopener\">limit how much landlords can raise rents on rental properties. <\/a>The regulations aim to help lower-income households <a href=\"https:\/\/www.investopedia.com\/terms\/r\/rent-control.asp#citation-7\" target=\"_blank\" rel=\"noreferrer noopener\">afford stable housing<\/a> and keep up with cost-of-living expenses.<\/p>\n\n\n\n<p>With nationwide rents rising at the fastest pace in decades and an <a href=\"https:\/\/www.forbes.com\/sites\/brendarichardson\/2023\/03\/23\/national-apartment-association-study-finds-that-rent-control-is-not-the-solution-it-appears-to-be\/?sh=67e58afc59f0\" target=\"_blank\" rel=\"noreferrer noopener\">affordable housing crisis<\/a> at hand, Congressional progressive Democrats and other activists argue that sweeping national rent control measures are urgently needed to help economically vulnerable Americans struggling to keep up with soaring rents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-arguments-for-national-rent-control\"><strong>Key Arguments for National Rent Control<\/strong><\/h3>\n\n\n\n<p>Supporters of national rent control, including tenant advocates, <a href=\"https:\/\/peoplesaction.org\/wp-content\/uploads\/2023\/07\/Economist-Sign-on-Letter_-FHFA-RFI-Response-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">progressive economists<\/a>, and some Democrats contend that <strong>corporate landlords are spiking rents <\/strong><a href=\"https:\/\/www.vice.com\/en\/article\/5d9yvz\/economists-support-national-rent-control-in-letter-to-biden-admin\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>to maximize profits<\/strong><\/a><strong>. <\/strong>They argue that imposing nationwide federal rent control regulations would:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Stabilize and make housing costs more affordable <\/strong>for tenants by capping rent increases. <\/li><li><strong>Prevent evictions and homelessness<\/strong>, which would, in turn, reduce spending on services like emergency room visits, jail and prison stays, and court system costs.<\/li><\/ul>\n\n\n\n<p>Congressional Democrats have <a href=\"https:\/\/www.wsj.com\/articles\/nationwide-rent-control-congress-democrats-progressives-housing-president-biden-11674233540\" target=\"_blank\" rel=\"noreferrer noopener\">urged President Biden to take executive action<\/a> against &#8220;corporate price gouging&#8221; in the housing sector. They assert that sweeping nationwide rent control measures are necessary to ensure basic housing affordability amid the rental affordability crisis. They\u2019ve also called on:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Federal Housing Finance Agency to <a href=\"https:\/\/thehill.com\/opinion\/civil-rights\/4144103-a-rallying-cry-for-national-rent-control\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>limit rent increases<\/strong><\/a><strong> on properties with government-backed mortgages.<\/strong><\/li><li>The Federal Trade Commission to <a href=\"https:\/\/www.wsj.com\/articles\/nationwide-rent-control-congress-democrats-progressives-housing-president-biden-11674233540\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>deem excessive rent increases an unfair trade practice<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-arguments-against-national-rent-control\"><strong>Key Arguments Against National Rent Control<\/strong><\/h3>\n\n\n\n<p>Critics of national rent control, including housing industry associations, some Republican lawmakers, and mainstream economists, counter that while rent control policies benefit people already occupying rental units, they<strong> <\/strong><a href=\"https:\/\/www.vox.com\/22789296\/housing-crisis-rent-relief-control-supply\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>fail to solve the long-term problem<\/strong><\/a><strong> of high housing costs and inadequate supply<\/strong>.<\/p>\n\n\n\n<p>Moreover, they argue that heavy-handed nationwide rent control regulations, while well-intentioned, would <a href=\"https:\/\/www.forbes.com\/sites\/brendarichardson\/2023\/03\/23\/national-apartment-association-study-finds-that-rent-control-is-not-the-solution-it-appears-to-be\/?sh=67e58afc59f0\" target=\"_blank\" rel=\"noreferrer noopener\">harm tenants, landlords, and communities<\/a> over the long run and <a href=\"https:\/\/www.nahb.org\/-\/media\/NAHB\/advocacy\/docs\/industry-issues\/rent-control-coalition-letter-081023.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">worsen the country\u2019s affordable housing crisis<\/a> by:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/thehill.com\/opinion\/civil-rights\/4162725-national-rent-control-will-make-the-housing-crisis-worse-heres-why\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Discouraging new housing construction and investment<\/strong><\/a>. <\/li><li><a href=\"https:\/\/www.vice.com\/en\/article\/5d9yvz\/economists-support-national-rent-control-in-letter-to-biden-admin\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Raising rents in non-controlled units<\/strong><\/a><strong>. <\/strong><\/li><li><a href=\"https:\/\/www.forbes.com\/sites\/brendarichardson\/2023\/03\/23\/national-apartment-association-study-finds-that-rent-control-is-not-the-solution-it-appears-to-be\/?sh=67e58afc59f0\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Reducing rental unit quality and supply<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-looking-ahead\"><strong>Looking Ahead<\/strong><\/h3>\n\n\n\n<p>Many housing experts agree that building more affordable housing is critical over the long term, but it will take time for supply to meet demand. In the interim, a balanced approach that implements rent regulation measures cautiously, while also supporting housing development, could provide relief for tenants in need and potentially avoid some of the most severe <a href=\"https:\/\/www.shortform.com\/blog\/unexpected-consequences\/\">unintended consequences<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.vox.com\/22789296\/housing-crisis-rent-relief-control-supply\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Exempt new construction<\/strong><\/a><strong> <\/strong>from rent control requirements to incentivize continued building to expand supply.<strong>\u00a0<\/strong><\/li><li><a href=\"https:\/\/www.vox.com\/22789296\/housing-crisis-rent-relief-control-supply\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Allow reasonable annual rent increases<\/strong><\/a> tied to the rate of inflation so landlords can cover rising costs.<\/li><li><a href=\"https:\/\/www.nar.realtor\/commercial\/create\/the-battle-against-rent-control\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Loosen restrictive zoning laws<\/strong><\/a><strong> and lower building costs <\/strong>to facilitate development.<\/li><li><a href=\"https:\/\/www.naahq.org\/examining-unintended-consequences-rent-control-policies-cities-across-america\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Expand housing voucher programs<\/strong><\/a> to make rent affordable for the lowest-income residents.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Would rent control protocols help solve the affordable housing crisis? What is rent control and why is it so controversial? Years of soaring rents have led some Democrats to call on the White House to implement national rent control regulations. Supporters argue that national rent control is urgently needed. Critics contend that federal rent control rules would harm renters, landlords, and communities Keep reading to learn more about national rent control.<\/p>\n","protected":false},"author":8,"featured_media":112697,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81,24],"tags":[727],"class_list":["post-112696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","category-society","tag-articles","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can the Affordable Housing Crisis Be Solved With Rent Control? - Shortform Books<\/title>\n<meta name=\"description\" content=\"There&#039;s an affordable housing crisis in the US due to rent spikes. 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