Study: Living in LIHTC Homes Increases Likelihood of Higher Education, Future Income

Monday, January 6, 2020 - 12:30pm

Children who live in low-income housing tax credit (LIHTC) housing saw an increase in the likelihood of attending a higher education program for four years or more and an increase in future earnings for each additional year they spent in a LIHTC home as a child, according to a paper written for the staff of the Joint Committee on Taxation. The paper, “Does Growing Up in Tax-Subsidized Housing Lead to Higher Earnings and Educational Attainment?” concludes that each additional year in a LIHTC home increased the likelihood of attending a higher education program for four or more years by 3.5 percent and indicated a 3.2 percent increase in future earnings. The study was from a database of families with children younger than 18 who lived in LIHTC homes between 1999 and 2012.