As Rent Inflation Peaks, Homes Guarantee Makes Case for Federal Rent Regulations in New Memo

People’s Action’s Homes Guarantee campaign today released a new memo outlining the current state of American rental housing supply and making the case for rent regulations to address the rental supply gap. The memo comes the day after August’s Consumer Price Index (CPI) data showed rent inflation increased to 7.8% year-over-year, meaning rent was 7.8% more expensive in August 2023 compared to August 2022.

“The rent is too damn high, and it is the dominant and enduring factor in inflation,” People’s Action Homes Guarantee campaign director Tara Raghuveer said. “Everyone should have a safe, accessible, sustainable, permanently affordable home, and the CPI numbers make clear that the federal government must regulate the rent. The real estate industry’s attempts to maximize their profits won’t solve the issue. Tenants are organizing to win rent regulations, and we won’t stop until we win.”

The memo on rent regulations and affordable supply includes:

• An assessment showing that affordable housing supply is lost to deregulation faster than new supply is built;
• A breakdown of how the FHFA can play a role in regulating the secondary mortgage market and protecting affordable supply;
• Examples and case studies of supply trends across the country.

The Homes Guarantee campaign’s historic tenant organizing has led the FHFA to consider attaching rent regulations and tenant protections to properties that receive loans backed by Fannie Mae and Freddie Mac. The new memo on affordable housing supply may be found here.