Will the Clock Run Out for Low-Income Renters in States?

Lisa Mailhot  |  October 8, 2024

Buyers

Will the Clock Run Out for Low-Income Renters in States?

 

In the face of rising rent costs, the future of affordable housing in the U.S. is at risk. The Low-Income Housing Tax Credit (LIHTC) program, which has kept millions of rental units affordable for decades, is now seeing its 30-year expiration period. As deadlines approach, as many as 223,000 affordable housing units could revert to market-rate prices in the next five years, forcing families into a housing market they may not afford.

This transition has been devastating for individuals like Marina Maalouf in Los Angeles’ Chinatown. Her rent surged from $1,100 to $2,660 overnight when her apartment’s affordable designation ended. With limited recourse, tenants are left fighting protracted legal battles or facing the harsh reality of homelessness.

Since its inception, the LIHTC program has built 3.6 million affordable housing units, becoming the backbone of affordable housing nationwide. However, the system’s design allows affordability terms to expire after 30 years, leading to the current crisis. While some states like California and Colorado are working to extend affordability measures, others lag, further exacerbating the nationwide shortage of affordable housing.

 

Local governments and nonprofits are stepping in, but resources are limited. Policymakers must balance the challenges of preserving existing affordable housing units with the growing demand for new construction. Without comprehensive planning, families like Maalouf’s are at risk of displacement, with no clear solution in sight. As Rossbert from Housing Colorado notes, “It’s hard to get out of that cycle,” emphasizing that as units are lost, the crisis deepens.

Bottom Line

Let’s connect if you’re considering a move to Orange County and want to explore affordable housing options or learn about the local market trends. Orange County offers diverse opportunities for homeowners, and I’m here to help you find the perfect fit.

 

 

Reference: “States scramble to shore up loss of low-cost housing” by Jesse Bedayn and Arushi Gupta | The Associated Press. Published on October 7, 2024.

RECENT BLOG POSTS

Why New Homes Are Losing Ground to Resales

New-home sales slowed in July 2025 as affordability challenges weighed heavily on buyers, despite builder incentives and discounts. With prices dropping below existing… Read more

Job Security Anxiety Puts the Brakes on Homebuying

Nearly half of U.S. workers are reconsidering big financial moves like purchasing a home because of concerns over job stability, according to a new Redfin survey. Whil… Read more

July 2025 Housing Report Shows Growth in Southern Home Construction While Other Regions Experience Declines

July 2025 housing starts data shows single-family construction climbing in the South while slowing in other parts of the country. For Orange County buyers and sellers,… Read more

Permits for Apartments Drop 23% Will Rents Start Climbing?

Apartment-building permits slowed across the U.S. this past year, signaling tighter future rental supply even as demand firms back up. Here’s what the national trend—a… Read more

Mortgage Rates Just Hit a 4-Month Low — Opportunity Knocks for Orange County

Mortgage rates have dipped to their lowest point since April, creating new opportunities for buyers and shifting the negotiating landscape for sellers. This drop could… Read more

Renting a House or Apartment? Here's What You're Really Paying For

Renting a home comes with more than just monthly rent. Hidden costs like utilities, insurance, and maintenance can vary significantly between houses and apartments. Le… Read more

Mortgage Rates Hit 10-Month Low, Boosting Buyer Budgets

Mortgage rates have fallen to their lowest point in nearly a year, giving homebuyers more room in their budgets and creating fresh opportunities for sellers. Discover … Read more

Home Prices Drop in 14 U.S. Metros

Discover the latest housing market trends, including significant home price drops in major U.S. metros like West Palm Beach and Austin. Learn what these changes mean f… Read more

Home Prices Are Falling in These 4 Cities

Home values are now falling annually in four major U.S. cities, signaling a shift in the national housing market. Learn which metros are affected, why this matters, an… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most