The Effects of the 2021 Child Tax Credit on Housing Affordability and the Living Arrangements of Families With Low Incomes
This study examines how the 2021 expansion of the Child Tax Credit (CTC) influenced housing affordability and living arrangements for low-income families.
Researchers Natasha V. Pilkauskas and Katherine Michelmore analyze the impact of the 2021 CTC expansion, which provided monthly payments to families with children, on housing stability and living conditions.
Their findings indicate that the increased credit improved low-income parents’ ability to afford housing, reduced back-owed rent by approximately 13%, and decreased the likelihood of moving due to housing costs. The study also suggests that the additional income enabled some families to achieve residential independence, moving out of shared or multigenerational households into their own residences. These outcomes highlight the role of direct financial support in enhancing housing stability and autonomy for economically disadvantaged families.
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