Why is the "Rent So Damned High"?
Katharine Nelson
Sophia Fox-Dichter
December 2025
Why is The “Rent So Damned High”? explores the drivers of high and rising rents and proposes a series of policies to address rental unaffordability in New Jersey and respond to changes at the federal level. Most experts say the chief explanation for high rents is an undersupply of housing and push a “build, build, build” strategy to bring rents down. Our findings challenge the consensus. Through a deep dive of academic and public research, we identified four primary drivers of high and rising rents: inflation, undersupply, widening inequality, and the consolidation and professionalization of landlords and real estate.
Federal policy is embracing building as the foremost solution to the affordability crisis. Trump’s Big Bill permanently expanded the country’s largest affordable housing production subsidy program, the Low-Income Housing Tax Credit (LIHTC). Meanwhile, deeper subsidy programs that can reach low-income renters are threatened with large cuts. To make housing affordable, we must also address stagnant incomes and the consolidation of homebuilders and landlords.
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