Decarbonizing by making housing energy efficient and through electrification will lower carbon emissions and provide economic and health benefits to households. Thus, federal, state, and local governments provide various incentives and subsidies to foster decarbonization in the housing market. However, tenants may be excluded from gaining advantages from the incentives due to the status quo and split incentive barriers, creating a case for environmental equity in the housing market. This paper aims to examine the effectiveness of decarbonization incentive programs in supporting equitable housing energy transition. A case study approach and an interview with a policy advocacy organization were undertaken to understand the local challenges in fostering a greener housing agenda in Ithaca and in the Tompkins County region. This study finds that structural challenges, particularly housing affordability due to undersupplied of rental units and income inequality, may hinder the equitable energy transition in the housing market of the region. Incentives for tenants may be insufficient to afford the cost of retrofits, assist every household who is cost-burdened by their housing cost, and address split incentives barriers in the market. In addition, technical factors may contribute to the higher cost of energy transitions such as older building structures and relatively cheaper fossil-based energy sources and requires further research.