Harvard Kennedy School-Bell Hall-5th Floor Belfer Building

The rental housing market is significantly impacted by the foreclosure and credit crises as well as the deepening recession. This paper focuses on the current state of the rental market, the availability of debt and equity for rental housing, and the impact of tax and other federal policies on rental housing vs. owner-occupied housing. Federal housing policy has long viewed rental housing as a stepping stone to the ultimate goal of homeownership. With the magnitude of the current foreclosure crisis and the dire circumstances facing many homeowners caught up in the crisis, could this be one of those rare moments in time when there is an opportunity to make a fundamental shift in policy and level the playing field between rental and owner-occupied housing?