Biden on rent control

President Joe Biden has announced a new housing plan aimed at reducing high housing costs and rents, which have surged due to rising mortgage rates and inflation. His proposal includes building 2 million new homes, providing $10,000 in mortgage relief, and capping rent increases at 5% for corporate landlords, who risk losing federal tax breaks if they do not comply. While Biden attributes high rental costs to 'greed-flation', critics, including billionaire real estate mogul Jeff Greene, argue that rent control measures often backfire, leading to fewer new housing units and deteriorating property conditions. Numerous studies suggest that historically, rent control policies have led to increased housing costs and homelessness as they reduce the incentive for landlords to maintain or invest in their properties. Economists warn that Biden's plan could discourage new investment in rental housing and worsen the crisis it seeks to address. Opposition to the plan is strong among Republicans and some economists, who advocate for market-driven solutions rather than government intervention.