March 7, 2023: Multifamily Housing Supply and LIHTC Properties
Housing starts–including multifamily–have outpaced household formation over the past three years, although the longer-term trend is the reverse: That households are forming faster than homes are being created over a five- and 10-year period. In this week’s Tax Credit Tuesday podcast, Michael Novogradac, CPA, discusses the short- and long-term effects of housing trends with Kelly Gorman, a Novogradac partner in the company’s valuation practice. They discuss whether market-rate apartment rents are dropping anywhere close to low-income housing tax credit (LIHTC) properties, what types of housing or geographical areas would be first to feel the effects of such a change and how a recession could affect affordable housing–taking a look back to the Great Recession and the pandemic-influenced recession for context. They include what factors affordable housing developers and owners should examine to see whether the supply-and-demand balance is changing in their area.