In recent weeks, the industry has come under scrutiny in the media around how it operates, the use of software relative to how rents are determined, and the role of an industry association. Multiple class action lawsuits have been filed in various parts of the country, which is a common legal tactic in such cases.
In addition, based on those media stories and the allegations in these lawsuits, members of both the House and the Senate have sent letters to the Department of Justice and the Federal Trade Commission asking for an investigation into possible anti-competitive practices in rental housing. It is likely that such investigations will take place and will take some time to resolve.
As the industry’s leading trade association, NMHC will be actively educating policymakers, regulators, the media and the public about the important role the industry plays in providing apartment homes for 38.9 million Americans and contributing $3.4 trillion annually to the economy.
NMHC has developed resource materials that may be useful to stakeholders considering these topics.
First and foremost, NMHC will continue to emphasize one of the largest drivers of rent increases in the past decade is the rental apartment shortage. There aren’t enough apartments for the number of renters in this country, which has created a housing shortage for the better part of the last decade. This shortage is compounded by recent interest rate hikes, lingering supply chain issues, and other challenges on the heels of the COVID-19 pandemic that make rents just one of many consumer costs driven up in the last 12 months.
Further, the highly fragmented nature of the rental apartment industry fosters competitive pricing, not anticompetitive behavior. No single owner or operator can “set” rents for an entire market because other owners can always price over or under based on numerous circumstances. We believe rents in every market are dictated by the dynamics of that local market—the supply of housing, the demand for housing, economic conditions and more.
In fact, because of changing economic conditions, current rent data shows that rents are falling nationally from a peak this past summer.
NMHC will continue to proactively tell the facts about our industry and the important role apartment providers serve in creating thriving communities. As always, please do not hesitate to reach out if you have any questions.
Sincerely,
Doug Bibby
NMHC President
Sharon Wilson Géno
NMHC President-Elect
