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"Housing programs are among the important public services being targeted for significant cuts to fund tax giveaways for billionaires and their wealthy donors," warned one group.
House Republicans' proposed budget reconciliation package will make mortgages expensive and harder to obtain, a progressive tax policy group warned Thursday, while over 30 advocacy groups sounded the alarm over the Trump administration's gutting of federal agencies and programs, moves that are exacerbating the U.S. housing crisis.
Americans for Tax Fairness (ATF) said that the proposed permanent extension of expiring portions of the Tax Cuts and Jobs Act (TCJA) signed into law by President Donald Trump during his first term would grant massive tax breaks to big corporations and the ultrawealthy, "wasting trillions of dollars that could help solve our country's affordable housing crisis."
"The deficit-financed tax cuts would also increase interest rates, making housing less affordable," ATF added. "To the extent the tax cuts are not added to the deficit, housing programs are among the important public services being targeted for significant cuts to fund tax giveaways for billionaires and their wealthy donors."
"They are paving the way for more predatory landlords to jack up rent."
ATF's assertion is supported by a report published in February by the Economic Policy Institute finding that "large, deficit-financed tax cuts would put upward pressure on inflation and interest rates, slowing growth and causing pain to households," including by making borrowing for a home more expensive.
ATF noted that extending the TCJA's weakened low-income housing tax credit (LIHTC) could result in 235,000 fewer affordable housing units over 10 years.
"Trump's tax scam reduced the financial incentive for corporations—the largest LIHTC investors—to make equity investments in the tax credits by slashing the corporate tax rate to 21%, and adopting a stingier measure of inflation," the group said.
"One of the most regressive provisions in the 2017 Trump-GOP tax law is the so-called 'opportunity zone' tax break," ATF contended. "While proponents claimed it would encourage investment in low-income neighborhoods, it has instead been ruthlessly exploited by wealthy real estate investors."
"In fact, this program has failed to deliver the promised economic opportunity to underserved communities, instead turning many of these neighborhoods into what can more accurately be described as exploitation zones," the group added.
The Lever's Luke Goldstein and Katya Schwenk reported Tuesday that the reconciliation package's proposed restrictions on state governments passing new regulations on artificial intelligence technology "could kill crackdowns on real estate management company RealPage for raising rents and contributing to the country's housing crisis."
RealPage is accused of price gouging renters via AI-powered surveillance pricing and automated insurance denials and management systems.
"Not only are House Republicans giving their billionaire donors and large corporations a massive tax handout, they are giving RealPage and bad actors like them a free pass to rip off working families," Lindsay Owens, executive director of the economic justice group Groundwork Collaborative, said Wednesday.
"They are paving the way for more predatory landlords to jack up rent, more apps to drive down gig worker wages, and more retailers to hike prices on consumers," Owens added. "The GOP tax bill tells you everything you need to know about the Republican Party's priorities and how unserious they are about lowering costs for working families."
More than a dozen states have joined a class action lawsuit accusing RealPage of using AI to artificially inflate housing prices across the nation.
Also on Thursday, more than 30 housing, consumer, and civil rights groups warned that the Trump administration's deep cuts to federal agencies and programs—spearheaded by the so-called Department of Government Efficiency—"are worsening the nation's housing crisis."
"Our families, neighbors, and communities deserve better than these untenable and unconscionable proposals."
"The Trump administration promised to address the high cost of housing, but so far has proposed policies that will increase the cost of rent, shred the nation's housing safety net, and push more people into homelessness," National Low Income Housing Coalition interim president and CEO Renee Willis said in a statement.
"At a time when more people than ever are struggling to afford the cost of rent and a record number of people are experiencing homelessness, rolling back fair housing protections and cutting funding for rental assistance, homelessness services, and affordable housing development—and gutting the workforce responsible for administering these programs—will only create more hardship," Willis added. "Our families, neighbors, and communities deserve better than these untenable and unconscionable proposals."
In a wider critique of Trump's policy proposals, U.S. Sen. Bernie Sanders (I-Vt.) said Thursday on social media: "Wages are stagnant. Housing costs are soaring."
"Many young people will never be able to afford their own homes, but Trump wants to increase the bloated military budget by $150 billion," Sanders added. "WRONG. That money should go toward building the affordable housing that we desperately need."
"Greedy landlords shouldn't profit from human tragedy," argued one housing defender. "Put people over profits for once!"
With some Los Angeles-area landlords jacking up rental listing prices by 50% or more as historic wildfires rage, housing advocates in the nation's second-largest city are calling for an immediate eviction moratorium and rent freeze.
As California authorities have noted in recent days, state Penal Code Section 396 prohibits taking "unfair advantage" of consumers during times of emergency or disaster. Landlords cannot raise rent by more than 10% of the price immediately prior to the emergency. Democratic California Gov. Gavin Newsom declared a state of emergency last Tuesday.
"If you're a renter who has been impacted by the fires, remember that you have rights!"
"It's called price gouging," California Attorney General Rob Bonta, also a Democrat, said during a Saturday news conference. "It is illegal. You cannot do it. It is a crime punishable by up to a year in jail and fines."
That isn't stopping some landlords from trying to profit from the deadly wildfires. Tenant rights advocate Chelsea Kirk—the director of policy and advocacy at the L.A.-based Strategic Actions for a Just Economy—has created an open database of more than 100 Zillow listings in which landlords have raised asking prices for rents by more than the legal limit, and in some cases by over 50 or even 75% or more.
Activists said there are two related things officials can do right now to mitigate the disaster's impact on renters.
"We need a rent freeze and eviction moratorium," the anti-capitalist collective People's City Council—Los Angeles said on social media.
NOlympics LA said, "L.A. City Council needs to implement a rent freeze NOW."
"Price gouging in the wake of disaster is unacceptable, this is simple and could be done immediately but will L.A. leaders even propose it?" the group added. "We need an eviction moratorium to stop landlords [from] evicting people to cash in on crisis."
Temporary eviction moratoriums and rent freezes were implemented at the national, state, and local level during the Covid-19 pandemic. While California's moratorium did not protect everyone from eviction, with thousands of renters removed from their homes under various exceptions, evictions plummeted thanks to the policy. However, by 2023 eviction rates had returned to—or surpassed—pre-pandemic levels.
The L.A. Tenants Union noted that "in the midst of all this destruction, eviction courts are still churning."
"The 6th floor of the downtown courthouse is packed today," the group added. "We demand an emergency eviction moratorium and a rent freeze."
If you’re a renter who has been impacted by the fires, remember that you have rights! Resources for renters below:
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— Ground Game LA (@groundgamela.bsky.social) January 9, 2025 at 4:35 PM
With thousands of Los Angeles area families now unhoused due to the fires, desperate victims are vulnerable to these unscrupulous landlords and real estate agents. Kirk wants them to know—and exercise—their rights.
"Because California is currently under an emergency declaration, rental price gouging is illegal," she told Common Dreams. "If you see a rental listing with a significant price increase—such as more than 10% over the pre-emergency price—you should report it to the attorney general's office immediately, and confront the landlord or agent about it, if you feel comfortable doing so."
Kirk continued:
That said, I recognize this is an incredibly vulnerable time, especially for people who have lost their homes and are urgently trying to secure housing. Confronting a landlord may feel risky and might compromise your chances of getting the place. But it's crucial to remember you have rights, even if you've already signed a lease. If you realize after signing that the landlord engaged in price gouging, don't hesitate to push back. There are groups actively working to ensure these laws are enforced and to support tenants in these situations.
Bonta offered similar advice: "If you know someone who's been a victim of price gauging please report it."
As for the landlords and agents trying to capitalize on disaster victims, Kirk said that "their actions are not only illegal but profoundly shameful."
"The community sees what they are doing, and we will hold them accountable," she told Common Dreams. "While I do not have much faith that officials will penalize landlords, we—the tenants and community organizers—will not sit idly by. We will take action, whether through organizing, direct action, or other means, to expose and stop these exploitative practices. Renters deserve to be treated with dignity, especially during times of crisis."
Bonta noted how new technology is being utilized to determine prices, and it's not just landlords and their agents using it.
"Some of our hotels and some of our landlords use algorithms based on demand and supply to set their prices," the attorney general said. "If those prices lead to prices higher than before the emergency by 10% that's against the law."
"If you're a mom and pop and you're not aware of these laws now you are aware," Bonta added. "Ignorance is not an excuse."
"Today is a good day for renters and families and a bad day for predatory landlords," said one advocate.
Executives at the property management software company RealPage claimed they had the "greater good" in mind when they offered corporate landlords a price-fixing algorithm service, said the U.S. Department of Justice as it filed a lawsuit Friday against the firm—but the scheme allegedly drove rental costs up in communities across the country, contributing to the housing crisis.
The antitrust lawsuit, filed with attorneys general from states including California and Colorado, accused RealPage of using confidential data about its clients to algorithmically determine the highest price renters would pay, using its AI software.
U.S. Attorney General Merrick Garland and other officials said the company has violated antitrust laws by providing the service, which gives corporate landlords recommended rental prices and allows them to align prices with one another instead of having to compete.
Assistant Attorney General Jonathan Kanter said the lawsuit is "best understood in the words of RealPage's own executives," who have said the company's software allows landlords to "drive every possible opportunity to increase price, even in the most downward trending or unexpected conditions."
"RealPage tells landlords that it would prefer everybody succeeding versus essentially trying to compete against one another," said Kanter. "But that's not how free markets work. Competition among landlords, not RealPage, should determine prices for renters."
Garland added that "Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law."
As Common Dreams reported in June, RealPage and the corporate landlords that rely on it has come under the scrutiny of watchdogs including Accountable.US, which found that the six largest property management firms brought in a combined $300 million in increased profits in the first quarter of 2024, thanks largely to rent hikes.
The windfall came as rent prices have skyrocketed by more than 31% since 2019, while wages have gone up by just 23%.
RealPage's algorithm is alleged to have helped fix rent prices for about 16 million rental units across the country, said Accountable.US.
"Today is a good day for renters and families and a bad day for predatory landlords," said Lindsay Owens, executive director of the progressive think tank Groundwork Collaborative. "The Department of Justice is right to take on the affordability crisis that RealPage has been supercharging. Algorithms are being used to unfairly drive up prices for housing, meat, and more. This price-fixing must be stopped."
Caroline Ciccone, president of Accountable.US, said Friday's lawsuit shows that "the Justice Department sees evidence of a major rental price-fixing conspiracy by RealPage that extends to metro areas around the country."
"We've documented how many of the same landlord companies that were sued in the initial rent fixing lawsuit have boasted of massive profits after jacking up rents," said Ciccone. "Any property company that uses RealPage in one of these states should face a serious probe. No renter in America should be price gouged under a potentially illegal rent fixing scheme."
Accountable.US added in a social media post that "while rents soared, RealPage executives bragged about how their software could 'maximize' profits, even in the face of a housing crisis."
Andrea Beaty, research director for the Revolving Door Project, said RealPage's actions have "left tenants across the country paying the literal price of corporate greed, even in the midst of a global pandemic."
"This lawsuit will hopefully usher forth renewed corporate accountability in the rental market beyond RealPage, which is far from the only corporation capitalizing on tenant's struggles to live in safe and affordable homes," said Beaty. "We hope that in addition to the bipartisan set of eight state attorneys general suing RealPage, even more attorneys general will sign on in response to RealPage's actions to drive up rental costs in communities in their states."