To Build or Not to Build

Recently, President Biden proposed a 5% cap on rental increases for landlords who own more than 50 units. Many believe that rent increases have reached staggering heights and the rent is too high in areas where purchasing a home is out of reach and this cap would prevent additional rising costs. Under this measure, corporate landlords would not get a tax write off if they increase rent beyond the allowable 5%. Many proponents however, like the National Association of Realtors, say that this would ultimately hurt renters. The President of NAR, Kevin Sears has stated, “price controls are appealing, but they have backfired on local governments and harmed the people we need to help the most.” He has noted that developers are reluctant to build in places that will have such rent controls and then it will even decrease potential supply further. Additionally, many believe that rent caps impinge upon private property rights.

The reality is that government restrictions typically do not help the problem much. Rather, it is important to come up with other means for increasing availability of affordable housing. Smalltimore Homes is a fair housing non-profit in Baltimore that offers micro shelters, or tiny homes to individuals in the community. The homes are typically 8×8, resembling a shed, but fully insulated and permanent and offer people a place that is their own. It allows an individual the space to walk in standing upright and store things, as well as sleep. LaQuida Chancey is the Founder and Director of Smalltimore Homes. who began building the homes in her background. She typically will go into a neighborhood that already has a homeless population and will replace tents with a microshelter. Ms. Chancey acknowledges that there should not even be homelessness if you look around and see the thousands of vacant lots in her community, and dilapidated homes, but there is so much red tape involved in obtaining access to the available property that it doesn’t help anyone. What she says is still needed to tackle homelessness is property and partnerships to help and her plan is to create small communities of tiny homes. If interested in more information, the website for more information, donations or volunteers is smalltimorehomes.org.

Until next time…