JACKSONVILLE, Fla. — President Joe Biden is calling on Congress to pass a law that would require corporate landlords to cap rent increases at 5%.
Otherwise, they would miss out on federal tax breaks. The president also want lawmakers to approve a plan aimed at building more affordable housing.
"While the prior administration gave special tax breaks to corporate landlords, I’m working to lower housing costs for families. Republicans in Congress should join Democrats to pass my plan to lower housing costs for Americans who need relief now," Biden said in a statement.
Under the president's plan, it would apply to landlords with over 50 units in their portfolio. According to a White House fact sheet, President Biden believes the combination of anti-gouging policies and historic levels of support to build more affordable housing without limiting the incentives for more supply. The President called on congress to pass the Biden-Harris Housing Plan, which would build 2 million homes and provide $10,000 in mortgage relief for homeowners.
The proposal however, needs to go through the house and senate to become a reality. This proposal has an uphill climb among house Republicans and Democrats. Critics said it discourages new construction and it would hurt the overall economy.
David Jaffee, a sociology professor at the University of North Florida, directs the Jax Rental Housing Project, an examination of the affordable housing crisis in Jacksonville. Florida does not have rent control laws, Jaffee believes the damage is already done.
"I'd say it's many days late, many dollars short, in terms of the fact," Jaffee said. "In Jacksonville, we've seen since basically 2019, 2020 on average, about a monthly increase of $300 to $400 a month in rent. And that's about a 30 to 35% increase."
While Jaffee believes what the president is bringing attention to is appreciated, he said he's not sure if Biden's plan would have any impact on the average working class tenant in Jacksonville.
"This doesn't apply to single family homes that have been converted into rental properties. So many people are facing corporate landlords that own hundreds of thousands in Jacksonville of single-family homes that were converted into rental properties bundled into portfolios and offered as investment instruments for their wealthy clients," Jaffee added.
The Jax Rental Housing Study shows more than 50% of renters in the city are cost burdened because of rent. Meaning, residents are paying more than 30% of their income toward rent.