Top findings from our affordable housing survey 2025

Walker & Dunlop surveyed 115 senior professionals across affordable housing development, ownership, management, and state housing agencies recently at AHF Live to gauge market sentiment. The results show a sector that is decidedly optimistic about the future, backed by real capital flows, but still wrestling with policy uncertainty, construction costs, and program complexity.

Key findings include:

• The appetite for affordable housing investment is surging: 90 percent of respondents surveyed in 2025 expect investment appetite to increase in 2026, up from 70 percent in 2025 and 58 percent in 2024.
• Actual investment is following through: 65 percent reported an increase in debt and equity investment in 2025 compared with 48 percent in 2024 and 43 percent in 2023.
• HUD programs remain critical: A majority of respondents see HUD as effective or very effective in supporting construction.
• Tariffs and economic policies are a clear headwind: 70 percent say tariffs and similar policies negatively affect affordable housing development.
• Recent tax bill changes are expected to lift production: 58 percent expect at least a moderate positive impact on new affordable housing construction from the One Big Beautiful Bill Act (OBBBA).

For developers, investors, and policymakers, these insights underscore both the opportunity and the need for a disciplined strategy.

Key trends in affordable housing

Optimism is rising, and it is backed by capital

For the third year in a row, sentiment around affordable housing investment has grown more bullish.

Do you believe appetite for investments in affordablehousing will increase in the next year?

Crucially, this is not just optimism on paper. In 2025, debt and equity investment in affordable housing jumped to 65 percent, from 43 percent in 2024.

For clients, the takeaway is clear. The capital is there, but it is more discerning. Sponsors with strong track records, thoughtful capital stacks, and realistic assumptions on rents, costs, and timelines are best positioned to capture this growing appetite, especially when they can demonstrate both impact and performance.

Privatization of Fannie Mae and Freddie Mac-divided

Survey participants are divided on what privatization of Fannie Mae and Freddie Mac would mean for affordable housing:

• 30 percent anticipate a positive effect.
• 49 percent expect a negative effect.
• 21 percent see it as neutral.

This split mirrors broader industry conversations. While some see potential for innovation and new capital channels, many worry about losing mission-driven focus or facing tighter affordability requirements.

For developers and investors, this uncertainty reinforces the value of working with a partner who understands agency lending programs, capital markets alternatives, and how potential policy shifts could affect deal execution. Walker & Dunlop Affordable Housing combines deep agency expertise with access to a broad spectrum of capital sources, helping clients navigate change rather than react to it.

HUD earns approval

Views on HUD’s role in supporting affordable housing construction skew positive:

Six in ten respondents think HUD is helping, as HUD programs remain critical to many capital stacks and central to closing deals. For many developments, particularly those serving very low-income households, HUD’s role is vitally important.

Specialized, innovative financing solutions and experienced HUD lenders can add meaningful value. Walker & Dunlop is one of the most active HUD/FHA lenders in the market, with specific structures tailored to the complex capital stacks of affordable housing.

Economic policies and tariffs are squeezing development

When asked whether economic policies such as tariffs are negatively affecting affordable housing development, 70 percent said yes.

Respondents pointed to higher material and labor costs as the primary barrier.

In this environment, developers are increasingly focused on:

• Locking in pricing through early procurement and creative contracting
• Exploring modular and alternative construction approaches to manage cost and timing
• Structuring deals with sufficient contingencies and interest carry to weather delays

These themes also echoed across panels at AHF Live, where speakers highlighted rising construction costs, delays, and the need for new approaches such as modular solutions to keep deals penciling.

Tax bill changes are expected to unlock more production

Recent tax bill changes under the One Big Beautiful Bill Act (OBBBA) are widely expected to support increased affordable housing production over the next five years:

Taken together, 58 percent of respondents anticipate at least a moderate bump in production from the tax changes. For sponsors and investors, this suggests:

• More equity and debt may be available to support new deals.
• Competition for scarce public resources (such as 9 percent credits and soft funds) could intensify.
• Well-prepared projects with strong teams and clear community impact will have an edge.

These insights help Walker & Dunlop provide actionable guidance, anticipate trends, and support developers in making informed decisions in today’s dynamic affordable housing landscape.

So, what does this mean?

While the survey offers a national snapshot, its implications differ across stakeholder groups and communities. Here’s how key themes from the survey translate on the ground.

Developers: converting optimism into deals

Strong sponsors attract capital, but only those who can control costs and navigate complex programs. Walker & Dunlop’s Affordable Housing platform delivers the financing, advisory, and executional strength developers need to turn opportunity into impact.

Investors and syndicators: aligning impact, CRA, and returns

Capital is flowing, but with a sharper focus. Investors are seeking resilient sponsors, stronger underwriting, and measurable impact. Walker & Dunlop Affordable Housing delivers trusted tax credit syndication, agency and HUD debt and investment sales capabilities, as well as nationwide access to CRA and mission-aligned investments.

Policymakers and agencies: translating sentiment into supply

Momentum is building, but challenges such as tariffs and funding gaps still hinder progress. Walker & Dunlop partners with policymakers and agencies to turn intent into impact, advocating for smart policy and enabling affordable communities nationwide.

How Walker & Dunlop can help

The AHF Live survey results confirm what many in the market are feeling: the next chapter of affordable housing will be written by those who can match optimism with execution.

Whether you are pursuing new construction, preservation, or recapitalization, Walker & Dunlop is positioned to help you navigate policy shifts, manage costs, and connect with the right capital partners.

Stay in touch with Walker & Dunlop Affordable Housing to discuss how these survey insights apply to your pipeline and strategy.