Homeownership Tax Benefits and the Affordable Housing Crisis
The website Talkpoverty.org recently published an article that discusses the gap between what the federal government spends on rental assistance programs and homeownership tax benefits. The article states that federal rental assistance programs in 2015 cost the government $51 billion, while “two of the largest homeownership tax programs—the Mortgage Interest Deduction and the Property Tax Deduction—cost $90 billion in 2015.”
The article goes on to state that “households making over $100,000 a year received nearly 90 percent of the $90 billion spent on the two tax programs discussed above. Households making less than $50,000 got a little more than 1 percent of those benefits.”
Low-income households receive even less of a benefit from these tax programs (the article puts the average monthly figure that low-income households receive from these programs at eight cents). This stands in stark contrast to households making over $9 million annually (0.1 percent of Americans) receiving an average of $1,236 per month from the two homeownership tax programs mentioned above.
The article ends with a discussion of how we can make this system more fair for low-income households, including redirecting some of the spending on wealthy homeowners to benefit first-time homeowners, helping low-income households save for a down payment, and other policies that could help put an end to the affordable housing crisis.
To read “The Biggest Beneficiaries of Housing Subsidies? The Wealthy.,” click here.