Washington, DC – July 15, 2024 – The National Housing Conference’s (NHC) President and CEO David M. Dworkin released the following statement in response to the Administration’s planned announcement of mandatory rent caps, stating that these measures will ultimately increase rents, reduce the capital needed to boost housing supply, and ultimately harm current and future renters.
“While we appreciate the Administration’s intent to address the shortage of affordable rental housing, research has consistently shown that mandatory rent control is an ineffective policy that fails to address the underlying issues of housing affordability – the fact that our nation’s housing supply has not kept pace with the needs of our growing population. Rent Caps don’t work and will have a chilling effect on housing supply. Exempting new construction will do nothing to change this, making clear that long term investments in housing can be made uneconomic retroactively. It’s time to stop making policy by bumper sticker and get serious about housing production. Unfortunately, the Administration’s plan will not help a single person over the long term or build any desperately needed affordable housing.
Rent stabilization discourages investment in multifamily rental housing, especially in communities of opportunity that already have limited affordable options. It does not specifically target lower- and moderate-income renters who are most in need of assistance, support, and stability. Instead, it encourages current renters to remain in place for longer periods and disincentivizes additional investments in housing, thereby limiting opportunities for others who lack access to the rental housing market in favor of those who already do. This inequitable approach disproportionately impacts people of color, who already have limited access to many housing markets, especially those with good schools, nearby public transportation, and other amenities.
The only way to address our affordable housing shortage is by building more affordable housing. Congress has legislation to do this which has already passed the House, but the Senate has failed to act. NHC calls on Congress to pass the Affordable Housing Credit Improvement Act and the Neighborhood Homes Investment Act immediately so that everyone in America can have access to safe, affordable housing.”
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About the National Housing Conference (NHC): Founded in 1931, the National Housing Conference is the oldest and broadest housing coalition in America. NHC is a diverse continuum of affordable housing stakeholders who convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest—an America where everyone is able to live in a quality, affordable home in a thriving community. Politically diverse and nonpartisan, NHC is a 501(c)3 nonprofit organization. To learn more about NHC, visit www.nhc.org.