More than half a million U.S. units are set to reach the end of their affordability compliance period by 2038
SANTA BARBARA, Calif., March 3, 2025 – Making use of exclusive data from the Yardi® Matrix affordable housing database, the latest Yardi Matrix Research Bulletin on the affordable housing sector draws attention to the potential loss of Low Income Housing Tax Credit (LIHTC) affordability restrictions across the U.S.
LIHTC funds are responsible for more than half of the country’s affordable housing stock. In exchange for receiving annual tax credits for 10 years, developers agree to limit rents for an initial 15-year compliance period. Upon expiration of this period, a developer can either enter a 15-year extended-use period or exit the program.
Yardi Matrix’s new affordable housing database reveals that more than 520,000 LIHTC units are on track to reach the end of their compliance period between 2025 and 2038. The extended-use periods of another 330,000 LIHTC units will also expire in that time. Five states will see at least 2,000 LIHTC units reach their extended-use period, led by Texas (9,179 units), Florida (6,512 units), Ohio (2,800 units), California (2,184 units) and North Carolina (2,122 units).
“As an increasing number of affordable properties reach the end of their original use periods and the cost of maintenance and repairs continues to rise, the capital and subsidies dedicated to meet the country’s preservation needs may prove inadequate,” said Paul Fiorilla, director of research for Yardi Matrix.
Gain more information on the status of the affordable housing sector in the latest Yardi Matrix National Affordable Housing Report.
Yardi Matrix’s affordable housing database encompasses more than 25,000 fully affordable properties comprising more than 3.3 million units. Affordable assets are defined as properties that limit rents as a condition of a tax credit and/or subsidy.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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