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The United States faces a potential loss of nearly 200,000 U.S. affordable housing units in the next five years, as government protections expire at various rental properties, allowing landlords to establish their rental rates.
Almost 200K U.S. Affordable Housing Units May Lost Over the Next 5 Years (PHOTO: Wikipedia)
Almost 200K U.S. Affordable Housing Units May Lost
To incentivize developers to construct U.S. affordable housing, the federal government relies on a 30-year tax credit program, Connectcre wrote. However, a wave of agreements that have supported low-income renters is nearing expiration, giving landlords the option to charge market rates for their units.
According to Moody’s Analytics, approximately 188,000 low-cost rental apartments funded by the government tax credit are eligible to convert to market-rate properties by 2027, as reported by the Wall Street Journal.
With one of the highest periods of rent growth in recent history, it is expected that many landlords will opt to increase rental prices. Apartment List data reveals that asking rents for market-rate units surged by 25% between early 2021 and the summer of 2022.
The potential loss of these U.S. affordable housing units raises concerns about the already pressing issue of housing affordability in the United States. Many low-income individuals and families rely on these units to access safe and U.S. affordable housing options. The expiration of government protections and the subsequent rise in rental rates could exacerbate the affordability crisis and contribute to U.S. affordable housing instability for vulnerable populations.
READ ALSO: Pittsburgh’s Affordable Housing Bond Set At $25-40 Million, Lower Than Anticipated
U.S. Affordable Housing Units
Efforts are underway to address this looming challenge. Advocacy groups, policymakers, and housing organizations are advocating for the extension of government subsidies and tax credits to preserve U.S. affordable housing stock. Additionally, calls for increased investment in U.S. affordable housing initiatives are being made to ensure the availability of safe and affordable homes for all Americans.
The preservation and expansion of U.S. affordable housing are critical for promoting economic stability, reducing homelessness, and fostering thriving communities. Proactive measures are taken to prevent the loss of these vital housing units and to ensure that U.S. affordable housing remains a priority on the national agenda.
