Brief Federal Housing Subsidies: To Rent or To Own?
Gillian Reynolds
Display Date
Download Report
(71.43 KB)

A family's housing can take one of two forms: renting and homeownership. Although both provide shelter, they differ significantly in their implications for asset accumulation. Direct outlays made up 87.1 percent of federal rental-assistance spending in 2006, while tax breaks provided over 98 percent of federal homeownership subsidies. This breakdown reveals that the federal government places a priority on homeownership as opposed to rental housing; however, the distribution of homeownership tax breaks suggests that they provide little benefit to low-income families.
Research Areas Economic mobility and inequality Families Housing Wealth and financial well-being
Tags Federal housing programs and policies Economic well-being Income and wealth distribution