National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Nearly 200K Affordable Units May Disappear as Government Protections Sunset
The U.S. risks losing nearly 200,000 affordable housing units over the next five years, as government protections end at hundreds of rental properties and landlords become free to set their own rents, reported the Wall Street Journal.
The federal government relies on a 30-year tax credit as its main program to encourage developers to build affordable housing. Now a wave of agreements that assisted low-income renters is set to expire, offering landlords the option to charge market rate for their units.
Citing Moody’s Analytics, the WSJ reported as many as 188,000 low-cost rental apartments funded by the government tax credit are eligible to convert their properties to market rate by 2027.
Many landlords are expected to raise rents following one of the highest periods of rent growth in recent history. Asking rents for market-rate units soared 25% between early 2021 and the summer of 2022, according to Apartment List.
- ◦Lease
- ◦Policy/Gov't
