Joe Biden Proposes National Rent Control

After winning the nomination by pitching himself as a moderate, Joe Biden has become so desperate to hold on to the Democratic nomination that he has transformed into Bernie Sanders.

On Monday, the Democrat proposed one of the most leftwing policies imaginable. He wants to institute a national rent cap of five percent, regardless of supply or demand and without pushing for ways to build more housing.

The Washington Post writes that “the plan is also likely to prove controversial among economists, including many Democrats. Experts on both sides of the aisle tend to argue that government limits on rent discourage new development by making it less lucrative. Housing is so expensive in America in large part because there simply aren’t enough homes, with economists estimating a shortage of between 1.5 to 5 million units. With construction and labor costs already high, some fear that developers could respond to new restrictions by reducing new construction.

‘Rent control has been about as disgraced as any economic policy in the tool kit. The idea we’d be reviving and expanding it will ultimately make our housing supply problems worse, not better,’ said Jason Furman, who served as a top economist in the Obama administration and is now a professor at Harvard.

That’s the case even if future units are exempted, Furman said, because it could change how developers consider their incentives.”

Both liberal and conservative critiques of rent control highlight its potential to exacerbate housing shortages. Liberals argue it discourages new construction and maintenance, reducing the overall housing supply. Conservatives believe it distorts the market, leading to inefficiencies and reduced investment in rental properties.

Both sides contend that while rent control aims to make housing affordable, it can ultimately harm renters by limiting available units and driving up prices in the uncontrolled market segments, thus not addressing the root causes of high housing costs.

“The proposal, to be announced while the president visits Nevada on Tuesday, is being championed by Biden in the middle of a tense presidential campaign and a time when housing costs have been a major driver of overall inflation.

But the plan would require solid Democratic control of Congress to become law. Additionally, most policymakers have said the best way to limit housing costs would be through more construction and changes to land use regulations.

Biden himself previewed the announcement at his NATO news conference Thursday, folding it into comments that blamed inflation on companies trying to maximize their profits in the aftermath of the pandemic,” reported The Associated Press.

“It’s time things get back in order a little bit,” Biden said. “If I’m reelected, we’re going to make sure that rents are kept at 5% increase.”

Biden did not give a reason for picking 5 percent as a reasonable price cap. Nor does the president explain why allowing millions of illegal immigrants into the country hasn’t had a dramatic impact on rent prices. 

The president’s move is similar to Bernie Sanders’ plan in 2020. The Vermont socialist recently penned an op-ed backing the president against Democrats who wish to see him stripped of the nomination at the upcoming Democratic National Convention in Chicago.

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