Is the Government Preparing to Step Into Landlord Tenant Regulation?
It's no secret that inflation has had a marked effect on the housing market whether you're trying to buy, sell or rent. Despite what you see and hear on an almost daily basis, make no mistake that we are in crisis of inventory that has resulted from high interest and already existing low inventory. As rents remain high, evictions begin to escalate, and moratoriums come to an end, it's not surprising that the Federal Government is making waves to the effect that they may attempt to step in and enact legislation for landlords and tenants in the private housing sector.
This is already raising some eyebrows among real estate groups like the National Association of Home Builders (NAHB), who suggests the potential for creating problems where they don't currently exist with efforts to enact legislation focused on tenant protection. Until now, State and local regulations have been more than sufficient to govern Landlord-Tenant relations, but as a recession looms (which many believe is already upon us), the current administration feels the need to offer further assistance to already cash-strapped consumers who are caught up in the now even higher cost of living. "We are exploring a broad set of administrative actions that further our commitment to ensuring a fair and affordable market for renters across the nation. "We look forward to continuing to work with lawmakers to strengthen tenant protections and improve rental affordability" said white House spokesperson Robyn Patterson.
While we at PropertyGuerilla.com certainly agree that rental affordability is a critical point of concern, and that price-gouging should never be condoned, is it the best idea for the Federal Government to try and step into the private sector as it pertains to housing? Having watched the indirect effect of their decisions for the past 2.5 years on housing affordability, it begs the question regarding the value of too much Government in an area so critical as housing. Stay tuned!