Rents in the United States saw an increase last month, remaining at levels higher than pre-pandemic times, as reported by real estate brokerage Redfin.
Sheharyar Bokhari, an economist at the firm, pointed out that while rents have remained stable on a national level, the situation can vary significantly depending on the location.
“On the East Coast and in the Midwest, where there has been less construction activity, rents are increasing. Meanwhile, in Sun Belt cities that experienced a construction boom post-pandemic, rents are decreasing rapidly,” Bokhari explained.
The Midwest and East Coast metros recorded the highest rent increases last month, with Washington, D.C. seeing the largest jump at 12 percent compared to the previous September. This was followed by Virginia Beach, Cleveland, Baltimore, and Chicago.
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Jacksonville, Florida, experienced the largest rent decline at 11.3 percent, followed by Raleigh, San Diego, Austin, and Tampa.
According to Zillow, “As more multi-family new construction is completed and more rentals come on the market, rent growth will likely continue to moderate. Additionally, recent declines in mortgage rates may pull more renters into the sales market, further softening rental demand.”
“Amid high rents, the Biden administration has called on Congress to pass legislation that would require corporate landlords to cap rent hikes,” the article shared.
Under the proposed policy, corporate landlords could only benefit from faster depreciation write-offs if they limit rent increases to a maximum of five percent annually. This rule would apply to landlords owning more than 50 housing units and impact over 20 million housing units in the U.S.
“The policy aims to stabilize rents as part of President Biden’s plan to increase affordable housing construction,” the article continued. “The President believes that this approach balances tenant needs without discouraging the supply of housing.”
Carl Harris, chairman of the National Association of Home Builders, expressed concerns that the Biden administration’s plan could deter developers from building new rental housing units, exacerbating the existing housing affordability crisis.
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