The Politicization of Rent Control

Propmodo Daily

Greetings!

President Biden's rent control proposal, capping increases at 5%, faces industry opposition. Plus, New York City plans to redevelop Brooklyn’s waterfront into a modern maritime port and mixed-use community hub.

Be sure to participate in today’s national rent regulation poll, and we’ll share the results tomorrow.

The Politicization of Rent Control

President Biden has made the high cost of housing a key part of his election strategy. His administration has proposed nationwide rent control to advance his agenda and hopefully gain votes. “President Biden is calling on Congress to pass legislation presenting corporate landlords with a basic choice: either cap rent increases on existing units to no more than 5% or lose valuable federal tax breaks,” the statement said.

The rebuttal to the proposal was swift and focused. The President and CEO of the Mortgage Bankers Association, Bob Broeksmit, said, “Rent control has been about as disgraced as any economic policy in the toolkit. The idea we’d be reviving and expanding it will ultimately make our housing supply problems worse, not better.” He suggested that instead of rent control, the administration should focus on expanding the Low Income Housing Tax Credit program to help build more affordable units.

The President of the National Multifamily Housing Council, Sharon Wilson Géno, also issued a statement against rent control. “Rent control has been tried for decades and been a resounding failure. Now is the time for actual solutions, not electioneering,” she said.

The National Association of Realtors’ President, Kevin Sears, also disagreed with the idea. “Price controls may seem appealing, but they have backfired on local governments and harmed the people we need to help the most,” he said.

The White House is likely prioritizing votes over industry support, and they might be right to speculate that the general public would embrace this kind of policy. In 2019, a poll showed that only 1 out of every 5 Americans opposed the idea of rent control. The Biden Administration also aimed to soften the impact of the bill to make it more palatable. The federal rent cap would only apply to landlords with more than 50 units, exclude any new construction, and only be in effect for the next two years.

It is unlikely that Biden will be able to pass any legislation like this before the election. But, if he gains a boost in the polls from proposing rent caps, it could lead him, or any other politician, to push for more rent caps in the future.

Feedback Loop

Spotlight

The City of New York recently announced it is assuming operations over a large marine terminal along the Brooklyn waterfront. With plans to transform the more than 120-acre site into a modern, mixed-use terminal, officials are hopeful it will be a boon to the city’s economy, like a number of other waterfront redevelopments in NYC and around the country.

What’s Happening in Commercial Real Estate

Roll call
Salesforce, once a strong opponent of return to office mandates, has now decided it will compare employee attendance with in person attendance goals set by each department each quarter.

Short sided
A Federal judge has thrown out a lawsuit challenging a short-term rental law in Colorado, saying that the ability to rent a property is not a “fundamental right” and, therefore, is not protected by the Constitution.

Propmodo Technology

Indoor air quality (IAQ) is essential in post-pandemic building environments. But, balancing IAQ with energy efficiency can be challenging. Strategies such as commissioning and advanced HVAC systems can help improve occupant health and ensure regulatory compliance. Effective planning, technology integration, and maintenance are crucial for achieving high IAQ standards, reducing operational costs, and enhancing tenant satisfaction.

Check out this week’s Propmodo Technology focus on HVAC and Indoor Air Qualitywith the support of our friends at Partner Engineering and Science, Inc.

What to Watch

Join today's webinar at 10:00 am PDT / 1:00 pm EST about property resilience, risk mitigation, and insurability. Partner Energy's Tony Liou and Jessica Wright will cover climate-proofing strategies, risk assessments, and resilience measures, including the ASTM Guide and COPE Assessment, which can affect your insurance rates.

Join us on Tuesday, July 30th, for a Propmodo Live webinar where we will explore the latest office occupancy trends reshaping workplace performance and utilization. We'll delve into shifting demand patterns, highlight success stories from various sectors, and discuss the effects of hybrid work models on occupancy and operational strategies.

Overheard

More News

Are You Enjoying This Newsletter?

Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

📧 Forward it to a friend and suggest they check it out.

🔗 Share a link to this post on social media.

🗣 Have ideas for future topics (or just want to say hello)? Share your feedback and tips at [email protected] or connect with us on X through @propmodo.

✅ Not subscribed yet? Sign up for this newsletter here.

📫️ Please add our newsletter email, [email protected], to your contacts to make sure you don’t miss any updates.

Explore Propmodo

• Read exclusive articles about a variety of topics, including Real Estate, Workplace, Buildings, and Development.

• Browse our collection of interactive Propmodo Researche-books.

• Sign up for upcoming Propmodo Live Webinarsor watch past Propmodo Live videos on-demand.

• Dive into Propmodo Technology articles, podcasts, and short videos about the future of commercial real estate.

Enjoy reading about trends and innovation in commercial real estate? Subscribe to Propmodo.com for unrestricted access to reliable, data-driven journalism and exclusive insights available only to subscribers.