Federal housing tax policy has long focused on producing new affordable housing, but we can make greater strides in this effort if we also preserve lower-cost housing before it deteriorates, is redeveloped or becomes unaffordable.
The Low-Income Housing Tax Credit (LIHTC) remains the nation’s principal affordable housing production tool. It has been incredibly successful, with some 3.9 million units placed in service from 1987 through 2024. Yet the United States continues to lose older subsidized properties and naturally occurring affordable housing through renovation, demolition, redevelopment and rent increases. Rising operating and maintenance costs force owners to embrace market-rate housing.
Harvard University’s Joint Center for Housing Studies estimates the number of inflation-adjusted rental units priced below $1,000 per month fell by more than 7 million between 2014 and 2024. Unless those losses are counted alongside new deliveries, production totals can ov
