Greensboro Regional REALTORS Association’s Post

#Property - United States plans nationwide rent controls - with a catch US President Joe Biden has announced a plan ahead of the 2024 US Election to cap rent increases across the nation at 5% per annum. On 16 July 2024, the Biden-Harris Administration called on Congress to pass legislation giving corporate landlords a choice to either cap rent increases on existing units at 5% or risk losing current valuable federal tax breaks. The proposal would apply during 2024 and the following two years but would only apply to corporate landlords who own at least 50 units of housing stock. Over 20 million units of rental housing would be affected by the proposal. An exception would apply to new construction and substantial renovation or rehabilitation. Failure to comply would see corporate landlords unable to take advantage of faster depreciation write-offs available to owners of rental housing. It seems unlikely Congress will get on board with the rent control proposal, particularly in the run up to the 2024 Election in November. (As an aside, former President Trump's son-in-law Jared Kushner's somewhat controversial family group controls 20,000 multi-family apartments and would be caught by President Biden's proposal.) The Australian Greens will no doubt pick up on this proposal. Their plans to date have not included a minimum rental housing ownership threshold before their controls kick in. Their plan also has no sunset date - two years of rent freezes followed by a maximum 2% increase every two years thereafter. The Federal government has repeatedly distanced itself from the Greens proposal. The Queensland government has also shut the door on rent controls - for now. https://lnkd.in/gSKs-XJx #USA #Election2024 #Landlord #Tenant #ResidentialProperty #Strata #Law #Lease

“Harris Housing Plan Aims to Add Three Million Homes. That Won’t Be Easy.” Vice President Kamala Harris, as the Democratic presidential nominee, has announced a plan to address the estimated 2-7 million U.S. housing shortage by adding three million homes in four years. She has not yet released the details of her plan. As reported in The Wall Street Journal article posted in the comments below 👇, her plan is likely to face political opposition. While two components could potentially boost housing supply, a thorough evaluation of the initiative's details is still needed. 1. Encouraging Construction: The plan offers subsidies and a tax credit to incentivize building smaller, affordable homes, tackling the decline in starter homes since the 1970s. 2. Rental Market Expansion: The plan proposes a $40 billion expansion of the Low-Income Housing Tax Credit (LIHTC) with some bipartisan support. The remaining components of her plan are unlikely to effectively address the housing shortage. 1. First-Time Home Buyer Assistance: $25,000 in down payment assistance for first-time homebuyers, costing $100 billion. 2. Regulating Large Landlords: Regulation of large corporate landlords, targeting algorithmic pricing and certain tax benefits to reduce Wall Street’s influence on housing. I encourage Harris to adopt strategies for new housing construction similar to those in the National Association of Home Builders' 10-point plan linked below 👇. - Bipartisan opportunity: Harris supports the Republican proposal to improve home affordability by opening more federal land for building. - Political and Regulatory Barriers: Implementing the plan will require bipartisan cooperation and overcoming local land-use regulations, as communities and governments often resist new construction. 💡 What practical strategies would you suggest for increasing the number of housing units in the U.S.? Share your thoughts in the comments below 👇! Please like 👍, comment below 👇, or share 👉. Click the 🔔 in my profile to get notified of my posts. And follow me for more content like this. #home #multifamily #homerental #buildtorent

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

President Biden recently introduced a plan to address housing affordability and security in America that includes legislation giving corporate landlords a choice to either cap rent increases on existing units at 5% or risk losing federal tax breaks. Rent regulation is one tool to help more families afford their homes. Research shows that capping annual rent increases work best in combination with other measures like: > Ensuring annual rent increase limits remain in place between renters to discourage landlords from pushing out existing renters to increase the rent > Improving housing stability for all renters by expanding just cause evictions protections to cover all renters Learn more: https://bit.ly/3WdpY5k

#RENTIncreasesApproved! Meeting last night, the #RGB (Rent Guidelines Board) has approved rent increases for almost one million stabilized apartments. The carefully watched annual vote by the nine-person panel, voted to support an increase of 2.75% for one-year leases, with five voting in favor. They also voted to support two-year lease increases of 5.25%. Increases will go into effect starting Oct. 1st! These increases were slightly less than those that the board approved last year, as a very vocal group of tenants gathered outside of Hunter College on Park Avenue to express their anger…regardless of these increases #affordablehousing remains a top concern in NYC where the cost of living is high and while tenants struggle to pay the rent, landlords are faced with the high costs of property taxes, insurance, mortgages and maintenance. #RentStabilization Douglas Elliman Real Estate Scott Durkin Stephen Larkin Hal D. Gavzie

🚨 Breaking News: Biden Administration Proposes Cap on Apartment Rent Growth 🚨 The Biden administration has put forward a proposal to Congress, aiming to cap apartment rent growth at 5%. It’s intended to address the rising cost of living and provide relief to renters across the nation. Key Points: Nationwide Impact: If approved, this cap would affect approximately 20 million apartment units nationwide, offering much-needed stability for renters. Proposal Details: The legislation would apply to landlords with more than 50 units in their portfolio and would be in effect through 2026. Tied to Federal Tax Breaks: Landlords who comply with the measure would continue to receive federal tax advantages, including faster depreciation write-offs. Those who do not comply could lose these benefits, creating a strong incentive for landlords to limit rent increases. Additional Measures: The proposal also includes a call to repurpose some public land for affordable housing projects and allocate $325 million in grants from the Department of Housing and Urban Development to build 6,500 new housing units. President Biden stated, “Families deserve housing that’s affordable — it’s part of the American Dream. Rent is too high and buying a home is out of reach for too many working families and young Americans, after decades of failure to build enough homes.” In my humble opinion this proposal is dead on arrival! More importantly, removing tax incentives and penalizing the people who create the housing will only lead to less housing supply. They are focusing on the symptom and not the cause… If you want more affordable housing, both for sale and rentals you need more inventory. More supply means more options and lower prices.  What are your thoughts on this proposed rent cap? Do you think it will help alleviate the housing crisis or will it create new challenges? Share your comments and let’s discuss!

New White House Rent Cap Proposal: What It Means for the Housing Market President Biden's recent proposal to cap annual rent increases at 5% for landlords with over 50 units has sparked significant debate. While the intention is to address high housing costs, many experts are concerned about its potential downsides. 📉 Here’s a quick overview of the key points from the article: Industry Reactions: Major housing groups, including the National Association of REALTORS® and the Housing Solutions Coalition, argue that rent caps could lead to reduced housing supply and unintended consequences for renters and communities. Impact on Supply: Critics say that imposing rent controls might deter developers from building new rental units, exacerbating the current housing shortage. With a reported shortfall of 1.5 million units, this could worsen affordability issues. Alternative Solutions: Industry leaders advocate for policies that incentivize the creation of new housing units rather than imposing restrictions. Strengthening tax credits and updating zoning laws could better address the affordability crisis. As the proposal awaits Congressional approval, it's crucial to consider how such measures could impact both current tenants and future housing development. What are your thoughts about the rent cap proposal? Let us know in the comments! Read the full article here: https://lnkd.in/ghsVuYU6 #HousingMarket #RentControl #RealEstate #AffordableHousing #PolicyDebate #MarketImpact #HousingCrisis #RealEstateInvesting

🏠 Vice President Harris Unveils Her Plan to Tackle Housing Affordability...Realistic? Harris's plan aims to build 3 million new homes to address the housing shortage, especially for middle-class Americans and first-time buyers. Key Supply-Side Proposals: • Expand Low-Income Housing Tax Credits 🏢 Incentivize builders to create more affordable housing. • Tax Incentives for Starter Homes 🏡 Encourage builders to focus on entry-level homes rather than luxury properties. • Discourage Wall Street Investors 🏦 Limit big investors from buying single-family homes, which drives up prices for regular buyers. The Challenges: • Congressional Approval Required 🏛️ For this plan to succeed, new laws must pass—requiring political alignment. • Local Zoning Restrictions 🚧 Some neighborhoods still prohibit affordable housing options like condos and townhomes. The Potential Impact: • Could help first-time buyers if implemented successfully. • BUT – It’s tough to manage, and past programs have struggled with bureaucracy and effectiveness. Good News for First-Time Buyers: With the Federal Reserve potentially lowering interest rates, relief could be on the way for those looking to buy their first home! Lower rates might also help unlock more homes as current owners move up. I am not in favor of governmental intervention in industry and typically the "fix" doesn't address the real problem. Affordable housing isn't affordable to build and until it is, nothing changes. Innovation, how to build homes less expensively combined with less expense created by government would help. Giving builders tax breaks sounds good too but I would want to understand that at much more depth. Until then, let's root for lower interest rates. That could get more inventory on the market from those homeowners with low rate mortgages who have been waiting for current rates to close the gap so they can move.

A new California bill has been signed into law which will now “require landlords of multifamily housing to give tenants the option to opt into having their rent payments reported to the credit bureaus.” The idea here is to help people improve their credit scores by making on-time monthly rent payments. “The law also allows landlords to collect a $10 fee or the cost of providing the service from each tenant who opts in, whichever is less, unless there isn't an actual cost to the landlord.” It's not exactly a burdensome move for landlords but something they’ll expect to offer if they have buildings with more than 15 units. #California #Landlords #Tenants #CreditScores

Today, President Biden is announcing new actions to lower housing costs, including: Calling on Congress to pass legislation giving corporate landlords a choice to either cap rent increases on existing units at 5% or risk losing current valuable federal tax breaks; Repurposing public land sustainably to enable as many as 15,000 additional affordable housing units to be built in Nevada; and Rehabilitating distressed housing, building more affordable housing, and revitalizing neighborhoods, including in Las Vegas, Nevada.