This Real Estate Technology Company Is Calling To For Action To Combat Affordability Crisis

In the face of a worsening housing affordability crisis, President Joe Biden recently proposed a national cap on rent increases. Biden called for legislative action to curb landlords’ ability to raise rents, emphasizing that, “Families deserve housing that’s affordable — it’s part of the American Dream.” 

Now, EasyKnock, a real estate technology company that says it aims to combat the housing affordability crisis, has announced a pledge to cap rent increases at just 2.5% or the Urban Consumer Price Index (CPI-U), whichever is lower. 

“As the White House has highlighted, there is a critical need to address the issue of rising rents and housing affordability. We believe it’s essential to take proactive steps to ensure fair and sustainable rent practices across the board," said CEO Jarred Kessler.

The company’s commitment to capping rent increases is particularly notable as its pledge is half of what Biden has proposed for a national rent cap. EasyKnock is now calling on other large property owners to make the same 2.5% commitment, potentially setting a new industry standard for rent increase caps. 

This comes after the company’s recent acquisitions of assets from Ribbon, Onder, and Balance Homes, which have expanded its ability to provide more opportunities for buyers to secure their dream homes with cash-backed offers.

Despite the urgency of the housing crisis, it’s unlikely that Congress will act on Biden’s proposal in the near future. That is why this call from a private company is so significant. However, the company's pledge isn't new; it says it has never raised rent by more than 2.5% or the CPI-U. 

EasyKnock aims to provide homeowners a way to convert the trapped equity in their homes into cash and remain in their homes as renters. Many Americans do not qualify for conventional loans to help them access the equity in their homes and EasyKnock's model potentially provides this financial freedom to the homeowners who need it most, including, the company says, offering liquidity, flexibility, and control.

Whether other large property owners will heed the call remains to be seen, but it's clear that EasyKnock is forging ahead regardless in its attempt to combat the affordability crisis. 

TMX contributed to this story.

Image source: EasyKnock

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