ALBANY, N.Y. (NEXSTAR) — To address the housing crisis and corporate greed, Pres. Joe Biden proposed capping annual rent increases at 5%. It would apply only to corporate landlords with more than 49 properties for rent, representing about half of all landlords in the market.
As inflation drives up the cost of living, Biden decried "the idea that corporate-owned housing is able to raise your rent $300, $400 a month" while millions struggle to make rent. Per the proposed Biden-Harris Housing Plan, corporate landlords who raise rents by over 5% would lose federal tax breaks.
Biden said he wants Congress to pass the plan. "But while we wait for federal action on rent control, New York State can act now to keep rents affordable by expanding rent stabilization to cover every renter in the state," said Cea Weaver, the director of Housing Justice for All Coalition, a statewide tenant advocacy organization. "New York tenants need rent control now, from Buffalo to Brooklyn.
In New York, most properties with a cap on yearly rental increases have been downstate, in New York City and Nassau, Westchester, and Rockland Counties. Rent increase exemptions have also been awarded based on disability or senior citizen status. Even so, New York City rent spiked in 2024, growing seven times faster than New York City wages.
Housing Justice for All took the position that local legislators should strengthen and expand rent stabilization in New York. "Landlords keep jacking up our rents for no reason but greed," Weaver said. "The research is clear: embracing rent stabilization keeps rents affordable, holds communities together, and boosts voter turnout."
The White House said over 20 million rental units in the country would be rent-controlled or rent-stabilized by the plan. It would also build millions of houses and offer a $10,000 mortgage relief credit to middle-class Americans buying a home for the first time.
Alexandra Alvarado, a spokesperson for the American Apartment Owners Association, argued that landlords feel the sting of inflation, too. "Rent increases are often necessary for landlords to cover these rising costs and continue providing high-quality housing," she said, adding, "One positive aspect is that President Biden's proposal targets landlords with 50 or more units, distinguishing between small and large landlords. However, the primary challenge remains the shortage of affordable housing. To address this, we must continue to encourage new housing construction."
The White House said that the plan exempts new construction and substantial renovations. That carve-out aims to help tenants while encouraging new affordable housing.
New York's COVID-era eviction moratorium ended in January 2022.
