Expiration of Subsidies Threatens U.S. Affordable Housing Stock, Report Warns
A significant portion of affordable housing units in the United States is at risk as subsidies and affordability restrictions are set to expire, leading to a 'slow-motion erosion' of affordable homes. Nearly 329,000 Low-Income Housing Tax Credit (LIHTC) homes, representing 12.3% of the tracked tax-credit stock, have affordability end dates between 2026 and 2030. Across all federally assisted housing programs, over 440,000 homes will reach a subsidy or restriction end date during this period. While an expiration doesn't automatically mean a loss of affordability, it creates a critical decision point where continued affordability must be renegotiated or re-financed. Rising interest rates, insurance, labor, and construction costs are making it increasingly difficult to recapitalize these aging properties, posing a significant challenge to preserving affordable housing.