News,Research
Urban Institute Publishes Report on Economic Impact of Affordable Housing Investment
In 2025 Housing Forward funded an assessment of the current state of affordable housing subsidies and related economic development incentives in the state by Urban Institute. A follow-up report on the economic impact of LIHTC-funded development was published on April 30, 2026 and is summarized below; view the full report online.
Oklahoma home prices for sale and rent have each increased substantially more rapidly than personal income over the past decade. Families with low incomes face particularly high barriers to finding affordable homes. None of the state's large counties have enough affordable and available housing for these households; expanded investment in affordable housing is showing early signs of success, but gaps remain.
Urban Institute's researchers studied 45 LIHTC (Low-Income Housing Tax Credit) program financed affordable housing projects in Oklahoma between 2019 and 2023 and found that the projects represent significant economic benefits to the state.
Those 45 projects produced 2,667 housing units and utilized $295 million in combined federal and state tax credit equity.
The key findings of the report include:
- Construction supported 4,043 job-years statewide, including direct, indirect, and induced employment. This is comparable to the projected job impact of the Inola aluminum plant, which is expected to be the largest primary aluminum production facility built in the United States.
- Total economic output reached nearly $814 million during construction and could reach more than $186 million over 10 years of operations, together exceeding $1 billion.
- Tax revenues could exceed $126 million across construction and 10 years of operations. For every dollar of tax credit equity invested, we estimate the projects will return approximately $0.43 in tax revenues, with roughly 79 percent of operational-phase revenues remaining at the state and local levels.
- Each dollar of tax credit equity is associated with $3.40 in total economic output, $1.95 in added value to Oklahoma's economy, and $1.00 in labor income.
