GOP tax plans could worsen housing affordability crisis

• The problem is concentrated in cities with the highest-paying jobs, like New York, Seattle, and San Francisco.
• The lack of affordable homes in America's most economically vibrant areas is reducing economic mobility, because workers cannot afford to move to cities with higher-paying jobs.

Both the House and Senate tax bills, by lowering the corporate tax rate from 35% to 20%, would automatically reduce the uptake of the affordable housing credit, because lower rates make tax credits less valuable.

• The House bill goes further, eliminating a tax break on bonds used to finance affordable housing projects.
• The Journal cites a report by Novogradac & Co., an accounting firm specializing in real estate, that predicts if the House bill passes, the U.S. economy would create 1 million fewer affordable housing units over ten years.