Press Releases
Watchdog: Congress Must Act on Biden Rent Cap Plan Addressing Corporate Landlord Price-Gouging Crisis
Today, President Biden is set to unveil a bold housing affordability plan that puts pressure on big landlords that operate more than 50 units: either cap rent increases at 5 percent a year, or lose key tax credits if they continue to profiteer. Government watchdog Accountable.US calls on Congress to immediately act on the proposal at a time of rampant profiteering from major corporate landlords and private equity firms on Wall Street greedily buying up property to corner markets. A recent Accountable.US report found the six largest publicly traded apartment companies brought in nearly $300 million combined in increased profits in Q1 2024, many due to rent increases. Notably, all six of these landlords have faced lawsuits related to their use of RealPage, the troubled property management software company under investigation from the U.S. Justice Department for allegedly facilitating collusion between large landlords to fix prices.
This kind of greedy behavior including alleged illegal rent fixing contributed to persistently increased housing costs even as overall inflation is cooling. Since 2019, the cost of rent has risen 31.4%, with wages only increasing 23%, as tenants on average need to earn nearly $80,000 to not spend 30% or more of their income on rent.
When big corporate landlords keep inflating rent on everyday families no matter how high their profits have grown – with some even allegedly stooping to illegal price fixing -- Congress must step in. Any lawmaker that’s sounded the alarm about housing affordability now has their chance to do something constructive about it: pass the Biden administration’s corporate landlord rent cap plan to lower costs. We know many property management company decisions to raise rent through the roof have been based on greed, not need, when taking one look at their earnings reports. Adding insult to injury, many landlords rewarded a small group of wealthy investors with generous new handouts like stock buybacks. The administration’s response is common sense. If a giant landlord swimming in profit refuses to limit their rent increases, why should they enjoy tax breaks at the expense of the very renters they’re price-gouging?”
Tony Carrk, Executive Director, Accountable.US
Accountable.US recently sent letters to state Attorneys Generals urging investigations in states where corporate landlords tied to troubled software company RealPage operate, including in California, Colorado, Massachusetts, New Jersey, and New York.
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