A growing number of Americans are struggling to find affordable housing. Many homeowners are spending at least 30 percent of their household income on housing costs, while the number of renters facing cost burdens has reached an all-time high. This affordability crisis is primarily due to insufficient production of new housing units.
Two new reports from the Center for American Progress propose solutions to this crisis. The first report outlines dual-track policy actions aimed at increasing housing supply and reducing housing cost burdens. The second report explores the potential of converting commercial properties into residential use to boost housing supply. These reports suggest policies that provide both immediate relief for acute problems and sustainable support for long-term housing production and operating costs.
The proposed solutions include:
- Expanding rental assistance through the Housing Choice Voucher program for low- and moderate-income (LMI) renters.
- Providing rental assistance to LMI renters in existing low-income housing tax credit units, where nearly 40 percent of tenants face cost burdens despite previous federal development subsidies.
- Converting income tax deductions for LMI homeowners’ mortgage interest and property taxes into income tax credits.
- Direct federal funding to state and local governments for constructing affordable rental units and homeownership units accessible to LMI families.
- Increasing incentives for state and local jurisdictions to reform zoning and land use rules to permit more multifamily and modular housing construction.
- Reforming and expanding the current Housing Choice Voucher system to serve more families with readily available subsidies acceptable to public and private landlords.
- Determining when conversion of commercial property into residential property is appropriate for local real estate markets—and making such conversions economically feasible.
“Solving the housing affordability crisis will require attention to the unique needs of local communities and will require a dual-track policy framework,” said Doug Turner, senior fellow for housing policy at CAP and author of the first report. “The housing cost squeeze that Americans face has been decades in the making. Policymakers need to take steps now to relieve current housing cost burdens while simultaneously investing in reforms to spur affordable housing development to expand supply.”
Read the reports:
“Reducing Housing Burdens While Creating a Longer-Term Affordable Housing Solution” by Doug Turner
“Converting Vacant Office Space Into Housing” by Michela Zonta, Lily Roberts, and Jessica Vela
For more information or to speak with an expert, please contact Sarah Nadeau at [email protected].
