President Biden's Rent Control Policy: Flaws Analyzed

Steve Forbes discusses President Biden's recent proposal for Nationwide rent control, aimed at capping rent increases to 5% annually for the next three years. This policy targets apartment owners with more than 50 units, encompassing around 20 million apartments. Forbes critiques the detrimental consequences of such rent control, drawing parallels to disastrous outcomes seen in the past. He points out that the policy's indirect approach through tax penalties would disincentivize investment in new apartments and reduce capital for maintaining existing structures. Forbes emphasizes that this negative chain reaction would ultimately lead to higher rental costs and fewer available apartments. Furthermore, potential depreciation schedule changes would further strain apartment owners, making the policy counterproductive in addressing housing shortages. Forbes analogizes this situation to monster movies where bad ideas re-emerge despite their proven failures, warning that such legislation would lead to a stagnant and less efficient housing market.