It is an election year and Congress will soon consider two bipartisan bills to address high rental costs for many renters. The first is the Workforce Housing Tax Credit (WFHTC) and the second would be an expansion of the existing Low-Income Housing Tax Credit (LIHTC). The WFHTC would extend eligibility for subsidized units tenants earning below the area median. On a combined basis the two credits would expand eligibility to about three quarters of the nation’s renters. Both programs would offer generous federal government subsidies for building new apartments. Such a massive expansion of the state would waste taxpayer money, crowd out more private builders, and deter many families from advancing economically. Worst of all, it would do precious little to address the nation’s housing supply problem.
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