There is disturbing evidence of a contraction in the stock of low income private rental housing. In this paper we offer evidence indicating that federal government tax preferences, economies of scope and higher operating costs are part of the explanation for this contraction.
Many countries have undergone a broad retreat from the use of indirect (supply) subsidies to meet low-income housing-affordability problems, shifting to direct subsidies often linked to means-tested income-maintenance systems.
The possible existence of investor clientele groups has received little attention in the real estate finance literature. In this paper we develop a clientele model, which in equilibrium produces a clustering of investors by tax characteristics.