The credit would have a small but significant impact on helping a more reasonable portion of income go toward rent. It's just one provision from the latest stimulus bill that will provide financial help to low- and middle-income Americans—the bill also provides stimulus checks and extended unemployment benefits, among other things. But the child tax credit has the potential to become permanent, which means it could have a bigger long-term impact than the bill's other provisions.
"Although the expanded child tax credit would make housing affordable for many low- and middle-income families, a huge number of them would remain rent-burdened, particularly in expensive parts of the country," said Redfin Chief Economist
The research in Redfin's report finds that nearly half of the American families included in its analysis are currently rent-burdened. Although that share would be reduced to about 45% with the child tax credit, that's still a large portion of middle-class families who have a hard time paying rent.
"The stimulus package and tax credit are a promising start and they will certainly help a lot of families pay rent and put food on the table," Fairweather continued. "But it's critical that the Biden administration implement long-term policies that substantially increase the supply of affordable housing to improve housing security for low-income families and help abate the homelessness crisis."
The child tax credit provides a
The credit provision will have the biggest impact on low-income families in relatively affordable areas like
To view the full report, including the 50 most-populous metro areas with the number of families that are rent-burdened before and after the new tax credit, please visit: https://www.redfin.com/news/child-tax-credit-impact-affordable-housing/
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Redfin, Redfin Journalist Services: Isabelle Novak, 414-861-5861, email@example.com