Wave of Rental Resets to Further Deplete Affordable Housing

Up to 188,000 units of affordable housing could revert to market rate rent by 2027 as 30-year government tax credits expire. And by 2033, roughly 100,000 units of tax-credit housing could expire each year without new subsidies or incentives. Since 1987, the federal government has financed more than 3.5 million of these units, which are about 38 percent below market rate on average. Although lawmakers are trying to hash out bills to expand the credits, it doesn’t look promising. And three decades ago, many of units were in poorer areas that are now gentrified and ripe for higher-income tenants. The number of new affordable units, meanwhile, isn’t keeping up with demand, particularly because high interest rates and construction costs make it more expensive to build.

Source: https://www.wsj.com/articles/wave-of-rental-resets-to-further-deplete-affordable-housing-62c8d063?mod=djem10point