Facing criticism over record-high rent increases during his presidency, President Biden announced a new initiative Wednesday to combat hidden fees in the rental housing market. The plan involves collaboration with major online rental platforms like Zillow, Apartments.com, and AffordableHousing.com to ensure upfront disclosure of costs such as application fees, online payment charges, and other ancillary expenses often sprung on renters at the last minute.

The administration is also working with state legislators to enact laws mandating the inclusion of all fees in online rental listings. This move comes as data from rent.com reveals a substantial 25% surge in median rent prices since the start of Biden's term, rising from $1,641 in January 2021 to $2,029 in June 2023.

However, Joel Griffith, a research fellow at The Heritage Foundation, argues that the White House's focus on "junk fees" misrepresents the core issue. He contends that increasing government intervention, including subsidies, building regulations, and lenient eviction policies, is the primary driver of escalating rents. Griffith suggests that the administration's initiative is a superficial attempt to deflect blame from these policies onto the private sector.

He further posits that even if private companies comply with the increased transparency measures, they will likely compensate for any lost revenue by raising overall rent prices. While the Biden administration points to its investments in low-income housing and eviction prevention programs as efforts to address rising rents, Griffith maintains that these interventions exacerbate the problem. He believes that government support creates a situation where private companies and landlords are forced to increase charges to maintain profitability.