Michael J. Novogradac, CPA recently blogged about an analysis the Joint Committee on Taxation (JCT) predicts that home ownership tax subsidies will outpace rental tax subsidies by approximately 11 to 1 for the five-year period 2014-2018.
If these expenditures were balanced based on the ratio of homeowner households to renter households, there would be about $2 in home ownership subsidies to every $1 in rental subsidies.
If these subsidies were distributed in a progressive manner based on income levels, then the ratio of homeownership to renter would be even less than 2 to 1.
To reach a 64 percent/36 percent proportionate allocation of tax subsidies, rental tax subsidies would need to be allocated an additional $350 billion over the five-year time frame. If you keep the total amount of tax expenditures constant, thus keeping the impact of housing tax subsidies revenue-neutral on the federal budget, $224 billion would need to be allocated away from home ownership and directed instead to rental subsidies over the five-year time frame.