Redfin: Renters Want Increase Caps

SEATTLE — 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 the real estate brokerage Redfin.

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 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.”

Source: Redfin

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