The Biden Administration on Wednesday announced a new strategy to combat a widening affordability crisis in the rental market, but the executive action was largely met with criticism from government officials and housing experts who worry that the plan isn’t stringent enough to reduce prices or resolve housing discrimination. National Association of Home Builders’ chairman Jerry Konter called Biden’s approach the “wrong strategy” due to its lack of market-based solutions and lack of funding for new multifamily and build-to-rent (BFR) housing.
The new executive action instead focuses on enhanced protections for renters with the goal of lowering eviction rates and limiting excessive rent hikes, NAHB reports.
In an official statement issued to the media in response to President Biden’s executive action, NAHB Chairman Jerry Konter said: “While not as bad as it could have been, the White House rental executive action is the wrong strategy, centering on rental protections instead of market-based solutions that will truly ease the nation’s housing and rental affordability crisis by spurring the production of badly needed affordable housing. Strengthening successful programs like the Low-Income Housing Tax Credit is the right way to proceed if we are to bring down rising home and rental prices.”
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