Biden to call for 5% cap on annual rent increases, as he tries to show plans to tame inflation

President Joe Biden is ready to propose a 5% cap on annual rent increases for tenants of major landlords as he tries to show he's doing something about the high cost of housing, according to a person familiar with the plan.

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.

The person familiar with the plan spoke on the condition of anonymity because the proposal has not yet been formally announced.

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.

«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."

The Washington Post first reported Monday the details of the plan, which would only apply to landlords who own 50 or more units. The price cap would not apply to units that have yet to be built.

White House officials declined to comment.

The median national rent was $1,411 a month in June, up from roughly $1,150 in early 2021 when Biden became president, according to Apartment List.

Asking prices for rentals jumped in the aftermath of the pandemic and have since cooled, but the Harvard University Joint Center for Housing Studies found in its most recent report that half of renters