On Tuesday, May 26, the Chicago Fed’s Economic Mobility Project hosted Vanishing Tax Credits and a Shrinking Market: Who Can Afford to Rent?, a virtual event focused on the Low-Income Housing Tax Credit, one of the nation’s primary tools for financing affordable rental housing and a key driver behind millions of units developed over recent decades.

That role played by the LIHTC program entered a new phase. A growing number of LIHTC properties were reaching the end of their affordability periods, with nearly a million units expected to transition out of rent restrictions over the next decade. In many areas where market rents exceeded restricted rents, this change reduced access to stable, affordable housing for low‑ and moderate‑income households.

Drawing on new research coauthored by Dustin Ingram, senior community development specialist at the Chicago Fed, a panel of experts discussed where and when these changes were occurring, how they impacted local housing markets and workforce needs, and what they meant for the future of rental housing affordability across communities. Panelists included:

• Edward Glaeser, Fred and Eleanor Glimp Professor of Economics, Harvard University
• Joseph Gyourko, Martin Bucksbaum Professor, professor of real estate, professor of finance, professor of business economics & public policy, the Wharton School, The University of Pennsylvania
• Janet Abrahams, president & chief executive officer, Housing Authority of Baltimore City

The discussion was moderated by Norah Mulinda, markets correspondent, Bloomberg Television.