Independent Analysis Examines Housing Credit Development Costs

A new report from Abt Associates, with analysis from the National Council of State Housing Agencies (NCSHA), finds that Housing Credit development costs, on average, are roughly the same as development costs for typical multifamily apartments, despite the additional federal requirements that Housing Credit developments are subject to. The report studied about 2,500 Housing Credit properties containing more than 160,000 units placed in service since 2011. In an editorial in The Hill, Stockton Williams, Executive Director of NCSHA, writes that newly constructed Housing Credit-financed apartments cost on average about $209,000 per apartment, while the average development cost for all apartments during the same time period was roughly $196,000 to $204,000. Williams notes that the Housing Credit is producing affordable apartments for people who need them just as cost effectively as the private sector is providing apartments to higher-income renters. The Housing Credit is the nation’s largest and most successful tool for encouraging private investment in the production and preservation of affordable rental housing, and this new report is a powerful testament to the Housing Credit’s success. Read more about the report on Enterprise’s blog and in NCSHA’s summary of the report.

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