The U.S. faces the potential loss of 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, according to a Wall Street Journal report.
The federal government relies on a 30-year tax credit program to incentivize developers in building affordable housing. Now, an expiring wave of agreements that assisted low-income renters offers landlords the option to charge market rate for their units instead.
Citing Moody’s Analytics data, WSJ reported that up 188,000 low-cost rental apartments funded by the government tax credit are eligible for conversion into market rate by 2027.
Many landlords are expected to raise rents following one of highest periods of rent growth in recent history; Apartment List found asking rents for market-rate units skyrocketed 25% between early 2021 and summer 2022 alone .
This looming crisis could have serious consequences if left unaddressed; without intervention from policymakers or other stakeholders , millions may be unable find safe and secure homes they can afford .
