Demetrius Mosley’s story sheds light on the imbalance of power in the rental housing market, where tenants like him are at the mercy of landlords who wield significant control over their living conditions and financial stability. With limited options and escalating costs, renters across the United States face increasing pressure as they struggle to make ends meet.
For Mosley and the millions of others who rent their homes, policymakers must intervene to provide relief and address the systemic issues driving this crisis. One immediate action the federal government can take is to attach conditions to every dollar of government-backed financing, ensuring that tenants are protected and the economy is stabilized.
The current state of the housing market reflects the influence of the industry that profits from it, with rents skyrocketing to unprecedented levels. As of January, the median rent has surged by over 29% since the start of the pandemic, exacerbating the financial burden on tenants. Simultaneously, evictions are on the rise, and homelessness has reached alarming levels.
With rent becoming the largest monthly expense for many low-income and working-class households, the situation has become untenable for millions of Americans. Urgent action is needed to address this crisis and prevent further harm to vulnerable individuals and families who are struggling to keep a roof over their heads.
President Biden’s recent focus on addressing the rent crisis facing working Americans marks a significant shift in federal policy, influenced in large part by years of advocacy and organizing by tenant unions across the country. Through the Homes Guarantee campaign, tenants have been actively engaging with federal agencies and the White House since September 2021, advocating for measures to protect tenants’ rights and combat anti-competitive practices in the housing market.
The administration’s recent actions, including the crackdown on landlords who engage in price-fixing and rent gouging, reflect a growing recognition of the urgent need to address the systemic issues driving the rent crisis. However, while these steps are a positive development, they are only a marginal response to the broader issue of rent affordability.
Recent revelations, such as the ProPublica investigation into RealPage’s price-setting algorithm, highlight the extent of rent gouging and predatory practices in the housing market. Landlords like Starwood Capital Group have been accused of raising rents significantly above the rate of inflation, exacerbating the financial strain on tenants.
The influence of the housing industry lobby in Washington further complicates efforts to address the rent crisis. Lobby groups like the National Association of Realtors wield significant power and financial resources to oppose regulation and protect the interests of landlords.
The federal government’s involvement in the housing market, particularly through entities like Fannie Mae and Freddie Mac, provides an opportunity to implement meaningful reforms. The Federal Housing Finance Agency (FHFA), as the regulator of Fannie Mae and Freddie Mac, has the authority to enact regulations that would protect tenants and promote affordability.
Implementing measures such as a 3% cap on annual rent increases for units with government-backed loans could help mitigate the impact of rent gouging and provide much-needed relief for tenants. However, patchwork regulation at the state level is insufficient to address the broader challenges facing tenants, highlighting the need for federal intervention.
For individuals like Demetrius Mosley and countless others struggling to afford rent, federal rent regulations are urgently needed to ensure housing stability and affordability. President Biden has the opportunity to enact meaningful reforms that will protect tenants and address the root causes of the rent crisis.