Redfin Survey Reveals 82% Of Americans Support Rent Caps: Strong Demand For Limits On Rent Hikes

According to new survey data from Redfin, support for rent control measures spans the political spectrum. 82% of Americans favor caps on landlord rent increases.

The findings come as the Biden administration pushes for federal rent control legislation. Under the proposal, landlords who own 50 or more units would be required to limit annual rent hikes to 5% or risk losing federal tax benefits. This cap would be in effect for two years and aims to reduce housing instability, especially in light of recent rent spikes that have exacerbated homelessness in some areas.

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The September survey of 1,802 adults found broad backing for rent caps across party lines, with 86% of Democrats and 79% of Republicans supporting such measures. The survey revealed similar levels of support between renters (86%) and homeowners (78%).

The results emerge as the White House promotes a federal policy to limit annual rent increases to 5% nationwide. Currently, only seven states and Washington, D.C., maintain rent control policies.

California is an example of the ongoing debate around rent restrictions. The state’s existing Tenant Protection Act caps annual increases at 5% plus inflation. A November ballot measure would expand local authority to impose stricter limits.

However, economists warn of potential unintended consequences. “Rent control sounds appealing for renters in theory because it limits price increases and saves money in the short term, but it eventually worsens rental affordability because it exacerbates the supply shortage,” Chen Zhao, Redfin’s economic research lead, said in the report.

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Research issued by the Urban Institute in September supports the Redfin assessment. Their analysis indicates that while rent stabilization increases the number of units affordable to low-income residents, it typically reduces the overall rental supply. Landlords may convert properties to other uses or avoid entering controlled markets entirely.

"If rent increases are capped below the amount developers would need to make a profit, they have little incentive to build more apartments and homes," Zhao said in the Redfin report. "The best way to make rentals more affordable is to build more units."

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The administration’s proposal targets large corporate landlords, defined as those owning more than 50 units. By complying with rent caps, these property owners would maintain access to tax depreciation benefits.

Implementation challenges loom large. The Urban Institute identified several key considerations, including enforcement mechanisms and preventing pre-implementation rent spikes. Evidence from Oregon suggests landlords may raise rents substantially before controls take effect.

The proposal’s success may depend on balancing tenant protections with market incentives.

While public sentiment strongly favors controls, the economic implications suggest that it could exacerbate the problem it aims to fix.

This has been updated by editor to clarify Biden’s federal rent control legislation is still currently a proposal.

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