How will Biden’s Rent Control Affect Multifamily – How To with Gino Barbaro
Hello and welcome. My name is Gino Barbaro, one of the co-founders of Jake and Gino. In this how-to video, I discuss Biden’s proposal on rent control and its potential impact on multifamily properties. This is a critical issue, and I want to hear your thoughts! Leave your comments below or email me at gino@jakeandgino.com
Hello and welcome. My name is Gino Barbaro, one of the co-founders of Jake and Gino. In this how-to video, I discuss Biden’s proposal on rent control and its potential impact on multifamily properties. This is a critical issue, and I want to hear your thoughts! Leave your comments below or email me at gino@jakeandgino.com
Key Topics Covered:
1. Government Involvement
- Rent Control Efficiency: I share my perspective on why rent control might not work as intended due to government intervention.
- Corporate Transparency Act: Insights into how the act, passed in 2021, affected 33 million LLCs and the ongoing issues with its implementation.
2. Stipulations of Biden’s Rent Control Proposal
- Applicability: It affects properties with 50+ units, raising questions about its impact on smaller entities.
- Exemption for New Construction: I discuss the importance of not penalizing new construction to address the affordable housing crisis.
- Penalties for Non-Compliance: Uncertainty around penalties and tax incentives for non-compliance.
3. Real-world Implications
- Inflation and Rent Caps: Challenges with capping rent increases in the face of rising costs for insurance, labor, and utilities.
- Deferred Maintenance: How rent control could lead to deferred property maintenance and its consequences.
- Supply and Demand: The need for increased housing supply to naturally balance the market without government-imposed price caps.
4. Economic Realities
- Rent vs. Ownership Costs: National averages showing renting is cheaper than owning, highlighting the need for market-driven solutions.
- Examples from Major Cities: Analysis of cities with rent control and their ongoing supply issues.
Conclusion
We need more supply in the housing market and fewer restrictions on pricing. Let’s focus on creating more affordable housing through public-private partnerships and incentivizing builders.
I want to hear from you! Please share your thoughts in the comments below or email me. Let’s have an open dialogue to find the best solutions for affordable housing.
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Gino Barbaro Co-founder of Jake and Gino
Connect with me:
- Email: gino@jakeandgino.com
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