$1,981 is the typical monthly rent in the United States based on most recent data. More than 19 million rents are considered ‘rent-burdened’, spending more than 30% of their income on housing costs. As concerns over rent affordability mounts, support for rent control policies have also gained traction. So can policy make rent more affordable in the United States? And if so, what would it look like?
Economists argue that rent control would deter developers from building more homes, which would only worsen the housing supply crisis in the United States.
America already suffers from a deficit of 3.8 million homes, especially at low-income price points, according to Habitat for Humanity.
“We have not invested as a nation in building the supply of housing in a variety of communities, in a variety of different price points. We’ve instead relied on the private sector to do so,” said Sharon Wilson Géno, president of the National Multifamily Housing Council. “But unless that money comes into the market and investors see that as a better investment than some other kind of equity or some other kind of investment, they’re not going to come.”
Watch the video to find out why so many economists are against the idea of widespread rent control.
01:45 — Rent control
04:37 — Implications
08:38 — Federal policies
Produced by: Juhohn Lee
Additional Camera: Charlotte Morabito
Supervising Producer: Lindsey Jacobson
Graphics: Jason Reginato & Alex Wood
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Should Rent Be Capped?