National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. Affordable Housing Completions Likely to Peak in 2025
U.S. affordable housing completions are likely to peak at a multi-year high of 78,377 units in 2025, 12.6% higher than in 2024, Yardi Matrix reported. The momentum may be short-lived, though, as 2026 deliveries are set to fall to 64,745 units.
Six markets are slated to break through the 2,000 fully affordable deliveries ceiling in 2025. Austin tops the list with 3,452 units, followed by Los Angeles (2,752 units), Brooklyn (2,701), Phoenix (2,688), Miami (2,037) and Seattle (2,018).
Affordable construction starts shrank by 28.7% year-over-year in 2024 to 66,000. Market-rate starts dropped at a steeper angle, falling 47% last year.
“The need for affordable housing has accelerated in recent years, and that is not likely to change as interest rates remain high and construction of for-sale housing lags historical levels,” said Paul Fiorilla, director of research for Yardi Matrix. “Despite that demand, the decline in starts signals fewer affordable multifamily deliveries in the years following 2025.”
