Roughly 4 in 5 U.S. Residents Believe There Should be Caps On Rent Hikes
24 Ottobre 2024 - 2:30PM
Business Wire
The vast majority of respondents to a recent
Redfin survey believe there should be caps on the amount landlords
are allowed to increase rent, regardless of whether they’re
Democrats or Republicans—however, Redfin economists say rent
control worsens housing affordability in the long run
(NASDAQ: RDFN) —More than four of every five U.S. residents
(82%) believe there should be caps on the amount landlords are
allowed to increase rent, according to a new survey commissioned by
Redfin (redfin.com), the technology-powered real estate
brokerage.
The survey data in Redfin’s report is from a commissioned survey
conducted by Ipsos in September 2024. The survey was fielded to
1,802 renters and homebuyers aged 18-65, including 188 who live in
California.
Caps on rent increases, also known as rent control, give
governments the authority to put a lid on how much landlords are
allowed to increase rent each year. The White House proposed a
federal rent control policy in July; the policy would cap rent
increases on existing units at 5% nationwide. Only seven states and
Washington, D.C. currently have state or local rent control
policies in place.
The vast majority of respondents believe there should be caps on
the amount landlords are allowed to increase rent, regardless of
their political affiliation or whether they own or rent the home
they live in:
- 86% of respondents who identified themselves as Democrats
believe there should be caps on the amount landlords are allowed to
increase rent, compared with 79% of respondents who identified as
Republicans.
- 86% of renters believe there should be caps, compared with 78%
of homeowners.
Redfin economists say rent caps can increase rental costs
because they make the supply shortage worse
Although most of the people surveyed support rent caps, Redfin
economists say that in reality, rent caps increase costs in the
long run.
“Rent control sounds appealing for renters in theory because it
limits price increases and saves money in the short term, but it
eventually worsens rental affordability because it exacerbates the
supply shortage,” said Chen Zhao, Redfin’s economic research lead.
“If rent increases are capped below the amount developers would
need to make a profit, they have little incentive to build more
apartments and homes. The best way to make rentals more affordable
is to build more units.”
78% of Californians support rent control
Nearly four of every five respondents who live in California
(78%) believe there should be caps on rent increases, similar to
the share for the U.S. as a whole.
California already has statewide rent control: The Tenant
Protection Act says landlords may not raise rent more than 5% plus
the increase in cost of living (inflation) each year. Rent control
is in the news in California in the run-up to the election because
there’s a proposition on the November ballot that would allow
cities to expand rent control. For instance, city governments could
limit annual rent increases to less than 5%, and the state couldn’t
intervene.
To view the full report, including a chart, please visit:
https://www.redfin.com/news/survey-homeowners-renters-support-rent-hikes
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
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version on businesswire.com: https://www.businesswire.com/news/home/20241024459548/en/
Contact Redfin Redfin Journalist Services: Kenneth Applewhaite
press@redfin.com
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