BREAKING: Biden to propose capping rental increases at 5%.
Great, price controls have worked so well in the past. Just ask Weimar Germany.
Discussion
Housing supply about to get capped hard! Get to living in your car boys
Here come queues, lists, patronage and bribes and black market.
Plus poor will be kicked of their homes so fast that Binden will have to cap tent prices.
*adjusted for inflation? I bet not.
The way to get around this is to simply not renew leases and get a new tenant each year. Can't be called a price increase if its the first price. And/or it'll kill the improvement and renovation market, too. No use dumping a ton of cash into a place if you'll never see an inflation adjusted return.
If a place needs a new roof, a landlord is already hesitant to get it done, and this will make it far worse.
On the other hand, maybe this will be the catalyst to crash the housing market and make buying and owning somewhat affordable-ish.
It might be cheaper to leave a place vacant for the requisite time for "renovations" and then rent it again at the new market rate.