Federal Policy Changes Favor Affordable Housing Development

As the pipeline of under-construction apartments continues to diminish, affordable and partially affordable properties are comprising an increasingly larger share of the overall new-supply mix and supporting new development activity, says Yardi Matrix. Annual completions for market-rate apartments will decline to pre-pandemic levels by 2028, while affordable and partially affordable new supply will remain near 2024-level highs.

The firm points to 2025 policy changes that have positioned geographically targeted federal tax incentives at the center of the nation’s affordable housing strategy. These measures include a
long-term extension of the Opportunity Zones program, a 12% expansion of Low-Income Housing Tax
Credit (LIHTC) allocations, improvements in private activity bond access for rehabilitation programs and broader eligibility for the 30% basis boost in Difficult Development Areas.

“The long-term effect depends on interest rate conditions, capital availability, construction labor constraints and local entitlement environments,” according to Yardi Matrix. “Even so, the combined weight of federal and state support positions the multifamily sector for a decade of elevated activity.”

Read More News Stories About: Yardi Matrix

Connect

Inside The Story

Yardi Matrix

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

Order Reprints

◦Development
◦Financing
◦Policy/Gov't

1079 Tumlin Street NW
Atlanta, GAAtlanta & Southeast + Apartment Buildings
Listing Status: Available
Listing Type: Call for offers
Price: $875,000
No. of Units: 7
Year Built: 1950
Opportunity Zone: No
Price per unit: $125,000
Learn More
1764 Spring Avenue
Atlanta, GAAtlanta & Southeast + 2-4 Units
Listing Status: Available
Listing Type: Call for offers
Price: $529,000
No. of Units: 3
Year Built: 1925
Opportunity Zone: No
Price per unit: $176,333
Learn More