While the 2008 financial crisis prompted a cyclical shift in U.S. housing — impacting everything from home prices to who can qualify for a mortgage — an equally impactful demographic change was just taking shape. The unprecedented wave of Baby Boomers that began retiring would disrupt the balance of the housing market.
Affordability Poses New Challenges to Low-Income Housing Market
Arbor’s Affordable Housing Trends Report Fall 2022, developed in partnership with Chandan Economics, examines the affordable housing market’s growth trajectory in a challenging economic climate.
- Rising construction costs have slowed new Affordable construction as financing gaps for Low-Income Housing Tax Credit (LIHTC) developers have widened.
- A sizeable expansion of the Housing Choice Voucher (HCV) program was removed from the Inflation Reduction Act of 2022, though the White House continues to call for increased funding in its annual budget resolutions.
- Nearly 90% of developers reported they will avoid markets with mandatory affordability requirements as local rent control measures are under consideration in five states.
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