Roughly 4 in 5 U.S. Residents Believe There Should be Caps On Rent Hikes

October 24, 2024 at 08:30 AM EDT

The vast majority of respondents to a recent Redfin survey believe there should be caps on the amount landlords are allowed to increase rent, regardless of whether they’re Democrats or Republicans—however, Redfin economists say rent control worsens housing affordability in the long run

(NASDAQ: RDFN) —More than four of every five U.S. residents (82%) believe there should be caps on the amount landlords are allowed to increase rent, according to a new survey commissioned by Redfin (redfin.com), the technology-powered real estate brokerage.

The survey data in Redfin’s report is from a commissioned survey conducted by Ipsos in September 2024. The survey was fielded to 1,802 renters and homebuyers aged 18-65, including 188 who live in California.

Caps on rent increases, also known as rent control, give governments the authority to put a lid on how much landlords are allowed to increase rent each year. The White House proposed a federal rent control policy in July; the policy would cap rent increases on existing units at 5% nationwide. Only seven states and Washington, D.C. currently have state or local rent control policies in place.

The vast majority of respondents believe there should be caps on the amount landlords are allowed to increase rent, regardless of their political affiliation or whether they own or rent the home they live in:

86% of respondents who identified themselves as Democrats believe there should be caps on the amount landlords are allowed to increase rent, compared with 79% of respondents who identified as Republicans.
86% of renters believe there should be caps, compared with 78% of homeowners.

Redfin economists say rent caps can increase rental costs because they make the supply shortage worse

Although most of the people surveyed support rent caps, Redfin economists say that in reality, rent caps increase costs in the long run.

“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,” said Chen Zhao, Redfin’s economic research lead. “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. The best way to make rentals more affordable is to build more units.”

78% of Californians support rent control

Nearly four of every five respondents who live in California (78%) believe there should be caps on rent increases, similar to the share for the U.S. as a whole.

California already has statewide rent control: The Tenant Protection Act says landlords may not raise rent more than 5% plus the increase in cost of living (inflation) each year. Rent control is in the news in California in the run-up to the election because there’s a proposition on the November ballot that would allow cities to expand rent control. For instance, city governments could limit annual rent increases to less than 5%, and the state couldn’t intervene.

To view the full report, including a chart, please visit: https://www.redfin.com/news/survey-homeowners-renters-support-rent-hikes

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024459548/en/

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Roughly 4 in 5 U.S. Residents Believe There Should be Caps On Rent Hikes

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