Press Release Economic Policy Inequality Poverty Private Equity

US Affordable Rental Housing Policy is Actually Designed to Enrich Real Estate Developers

May 16, 2024

Contact: Eleonora Piergallini, Mail_Outline

Washington, DC — To understand why US policy on creating affordable rental housing continues to fail decade after decade, look at what is being done – more and more tax credits for the rich – and what isn’t being done – addressing the very long waiting lists for public housing. CEPR’s Algernon Austin shows how the Low-Income Housing Tax Credit and the Faircloth Amendment dampen the expansion of affordable rental housing while enriching real estate developers and investors.  

“Some members of Congress have recognized the need to repeal the Faircloth Amendment. Once that Amendment is gone, the federal government can move toward constructing affordable, quality social housing,” writes Austin.

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