Chris Cervelli, CCIM, CPM’s Post

WA needs more housing. Should it limit rent hikes, too? The relationship between property taxes and rent control is complex. Property taxes are typically paid by the property owner, who may attempt to recoup the cost through rent payments. Rent control, on the other hand, seeks to limit the amount by which landlords can increase rent. This can lead to a situation where property owners' ability to offset the impact of property taxes through rent increases is constrained by rent control regulations. As a result, some argue that rent control can lead to reduced real estate tax revenue, particularly in areas with a high percentage of rental properties, as it limits the ability of landlords to adjust rents in response to property tax changes The interplay between property taxes and rent control involves economic, social, and political considerations. While property taxes can influence rental costs, the impact of rent control regulations on the ability of property owners to pass on tax-related expenses to tenants is an important factor to consider in understanding the overall relationship between these two aspects. https://lnkd.in/g-TXyheq

Biden proposes 5% cap on rent hikes Yesterday in Nevada, President Biden announced a plan to address low housing affordability as he tries to regain voters’ faith through the one place they hurt the most—their rent autopay system. The proposal, which would last two years, would end tax credits for corporate landlords (those with 50+ units) who raise rent by over 5% a year. The administration estimates it would affect 20 million rental units across the country. Renters could use the break. Housing costs continue to live rent-free in voters’ minds: Half of all renters in the US are cost burdened by housing, meaning they spend more than 30% of their income on rent and utilities, according to a Harvard University study. A Gallup survey in May found that 41% of Americans see inflation and the cost of living as their most important financial problems. Inside the policy push Haters (economists) will argue that Biden’s proposal is more harmful than helpful because rent control reduces the supply of affordable housing by disincentivizing developers to build more units. One reason housing is so expensive in the first place is that there’s a shortage of between 4 million and 7 million units, according to a Pew study. Landlords, developers, and bankers argue this proposal will exacerbate that problem. But…the White House positions it as a temporary bridge. An estimated 1.6 million housing units are expected to come on the market in the next few years, a flood of supply that will, theoretically, bring shelter prices down. Putting a cap on rent increases would help renters get by until then. Zoom out: Biden’s diving deep into housing policy. He also announced: $325 million in grants to fund home-building in seven cities A plan to direct federal agencies to repurpose excess land for affordable housing Time check. It’s doubtful that a divided Congress will pass the proposal before the election, but it’s something Biden would fight for “in a second term,” an administration official told reporters.—CC https://lnkd.in/eU8UrWWF

Biden proposes 5% cap on rent hikes Yesterday in Nevada, President Biden announced a plan to address low housing affordability as he tries to regain voters’ faith through the one place they hurt the most—their rent autopay system. The proposal, which would last two years, would end tax credits for corporate landlords (those with 50+ units) who raise rent by over 5% a year. The administration estimates it would affect 20 million rental units across the country. Renters could use the break. Housing costs continue to live rent-free in voters’ minds: Half of all renters in the US are cost burdened by housing, meaning they spend more than 30% of their income on rent and utilities, according to a Harvard University study. A Gallup survey in May found that 41% of Americans see inflation and the cost of living as their most important financial problems. Inside the policy push Haters (economists) will argue that Biden’s proposal is more harmful than helpful because rent control reduces the supply of affordable housing by disincentivizing developers to build more units. One reason housing is so expensive in the first place is that there’s a shortage of between 4 million and 7 million units, according to a Pew study. Landlords, developers, and bankers argue this proposal will exacerbate that problem. But…the White House positions it as a temporary bridge. An estimated 1.6 million housing units are expected to come on the market in the next few years, a flood of supply that will, theoretically, bring shelter prices down. Putting a cap on rent increases would help renters get by until then. Zoom out: Biden’s diving deep into housing policy. He also announced: $325 million in grants to fund home-building in seven cities A plan to direct federal agencies to repurpose excess land for affordable housing. Time check. It’s doubtful that a divided Congress will pass the proposal before the election, but it’s something Biden would fight for “in a second term,” an administration official told reporters.

Yesterday in Nevada, President Biden announced a plan to address low housing affordability as he tries to regain voters’ faith through the one place they hurt the most—their rent autopay system. The proposal, which would last two years, would end tax credits for corporate landlords (those with 50+ units) who raise rent by over 5% a year. The administration estimates it would affect 20 million rental units across the country. Renters could use the break. Housing costs continue to live rent-free in voters’ minds: Half of all renters in the US are cost burdened by housing, meaning they spend more than 30% of their income on rent and utilities, according to a Harvard University study. A Gallup survey in May found that 41% of Americans see inflation and the cost of living as their most important financial problems. Haters (economists) will argue that Biden’s proposal is more harmful than helpful because rent control reduces the supply of affordable housing by disincentivizing developers to build more units. One reason housing is so expensive in the first place is that there’s a shortage of between 4 million and 7 million units, according to a Pew study. Landlords, developers, and bankers argue this proposal will exacerbate that problem. But…the White House positions it as a temporary bridge. An estimated 1.6 million housing units are expected to come on the market in the next few years, a flood of supply that will, theoretically, bring shelter prices down. Putting a cap on rent increases would help renters get by until then. Time check. It’s doubtful that a divided Congress will pass the proposal before the election, but it’s something Biden would fight for “in a second term,” an administration official told reporters.

President Biden announced a proposal to Congress on July 16, requiring housing providers with 50+ units to cap annual rent increases at 5% or lose accelerated depreciation. He also proposed releasing federal lands for housing, pending congressional approval. The National Association of Home Builders (NAHB) opposes rent caps, arguing they would worsen the housing affordability crisis by discouraging new construction, leading to higher rents and reduced maintenance. Key Takeaways: Biden's Proposal: - Rent cap of 5% for housing providers with 50+ units or lose accelerated depreciation. - Release federal lands for housing, pending congressional approval. NAHB Opposition: - Rent caps discourage new construction, leading to higher rents and reduced maintenance. - Rent control disincentivizes investment and doesn't target lower-income renters effectively. Alternative Solutions Proposed by NAHB: - Reduce costly regulations. - Expand and strengthen the LIHTC. - Overturn restrictive energy codes that increase housing costs. - Encourage zoning for high-density housing. - Promote public/private partnerships and direct assistance to those in need. https://lnkd.in/gENg4utP

🔍 Industry Stands Firm Against Federal Rent Control 🔍 In response to President Biden’s recent housing action plan, which proposes a 5% rent cap for corporate landlords and the use of public land for affordable housing, the Manufactured Housing Institute (MHI) and a coalition of housing organizations have issued a letter to the White House opposing the rent cap proposal. The coalition’s stance is based on extensive research highlighting the inefficiency of rent control policies that, in many cases, lead to higher rents and reduced housing supply by restricting capital. The coalition emphasized that a federal rent cap only adds complexity to the current mix of state and local regulations, which ultimately discourages investors and limits new housing development. Instead, the coalition urges collaboration with housing providers to implement policies that genuinely expand housing availability—such as the initiatives outlined in the administration’s Housing Supply Action Plan. https://lnkd.in/gdesF4hR #ManufacturedHousing #RentControl #AffordableHousing #HousingPolicy Manufactured Housing Institute

This story involved a new program to boost housing affordability in Ohio. The state faces rising property taxes and the growing influence of real estate investment firms, which buy up houses to rent out.   A few quick facts:   -      More than 1 million Ohioans spent over half their income on housing in 2021 -      Ohio’s rate of owner-occupied housing stood at 66.8% as of 2022 -      Ohio needs to build 14,000 to 19,000 homes per year to address demand -      It’s currently building about 12,000 new homes annually   Among other things, the Welcome Home Ohio program requires that houses sold through the program go only to individuals who plan to occupy them and who agree not to rent out any part of the property.

Calling it “typical election year rhetoric”, a broad coalition of housing and real estate industry groups has pushed back on President Joe Biden’s proposal for a national rent control plan that would cap rent increases at 5 percent at properties owned by corporate landlords… It is unlikely that such a proposal would pass either the Republican-controlled U.S. House of Representatives or the Democratic-majority U.S. Senate, especially with four months to go until the 2024 presidential election. Housing industry groups reacted quickly to the president’s proposal, most pointing to decades of research showing rent caps reduce the supply of available housing and fail to benefit the renters who need help the most. “This legislative proposal will not create a single new unit, while raising costs on the very residents it purports to help,” Sharon Wilson Géno, president of the National Multifamily Housing Council, said in a prepared statement. “Rent control has been tried for decades and been a resounding failure. Now is the time for actual solutions, not electioneering.” More details here: https://lnkd.in/gDNnmZmd #multifamily #realestate #REITS #housing

As rent cap increases are taking effect, we have to be mindful there is a flip side to this that may negatively affect the property owners and discourage some of them from offering or building new affordable options. Here’s hoping that the new tax incentives or subsidies for those who provide or develop affordable housing options will encourage continued investment in affordable housing projects. #AffordableHousing #RentPrices #RentCap

Debate Over Federal Rent Cap Heats Up! President Biden's proposal to cap rent increases at 5% faces opposition from housing and real estate industry groups. It's certainly important to have affordable housing, but have you ever seen rent caps help a community achieve this goal in the long term in a sustainable fashion? I have yet to hear a true community success story from rent caps! * Industry Pushback: Housing groups argue against President Biden's proposal to cap rent hikes at 5% for multifamily properties with over 50 units, calling it ineffective and damaging. * Building More Housing: Experts stress that creating more affordable housing is a better solution than imposing rent controls. * Potential Consequences: Critics warn that rent caps could decrease housing quality and deter new construction, worsening the housing crisis. * Mixed Opinions: While some advocate for protections against rent gouging, others see rent caps as a barrier to investment in housing. #HousingCrisis #RentControl #RealEstate #AffordableHousing #multifamily SVN Desert Commercial Advisors National Multifamily Housing Council National Apartment Association (Naahq) National Low Income Housing Coalition National Housing Conference https://lnkd.in/gThR_Bih