Subsidizing the Middle: Policies, Tradeoffs, and Costs of Addressing Middle-Income Affordability Challenges

Any opinions expressed in this paper are those of the author(s) and not those of the Joint Center for Housing Studies of Harvard University or of any of the persons or organizations providing support to the Joint Center for Housing Studies. [...] In this paper, we specifically ask: • What state and local middle-income housing programs exist to support the housing needs of middle-income renter households? What are the characteristics of these programs and whom do they intend to serve? • What are the characteristics and affordability challenges of households typically eligible for middle-income housing programs? How do affordability challeng. [...] Despite the scarcity of affordable options for the lowest-income renters anywhere in the country, existing rental assistance programs are woefully underfunded, leaving three out of every four income-eligible renter households without a housing subsidy.4 In light of the concern that middle-income housing subsidies will detract from the needs at the bottom of the income spectrum, the growing prevale. [...] Employment Status of Lower- and Middle-Income Renters with Cost Burdens Numerous state and local middle-income housing programs have been created in recent years with the explicit intent to address the affordability challenges of households in the workforce. [...] The affordable supply for middle-income renters is restricted primarily by the lack of affordability at the low end that forces lower-income households to occupy units affordable to middle-income renters and by the potential mismatch in the suitability and location of affordable units against where middle-income households need them.