{"id":42041,"date":"2026-01-19T06:00:00","date_gmt":"2026-01-19T14:00:00","guid":{"rendered":"https:\/\/www.yardi.com\/blog\/?p=42041"},"modified":"2026-06-18T06:11:26","modified_gmt":"2026-06-18T13:11:26","slug":"2026-affordable-housing-reports-yardi-matrix","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/2026-affordable-housing-reports-yardi-matrix\/","title":{"rendered":"2026 affordable housing reports: See the latest from Yardi Matrix"},"content":{"rendered":"\n
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June 2026: Declining starts & deliveries ahead<\/h2>\n\n\n\n

The high level of U.S. affordable housing deliveries seen over the past several years will decline as starts decelerate in the face of challenging market conditions. A new national report from Yardi Matrix<\/a> outlines the challenges current market conditions pose to the financing, approval and construction of affordable housing units.<\/p>\n\n\n\n

Deliveries slide from 2024 peak<\/h3>\n\n\n\n

After five consecutive years of increased affordable apartment deliveries that peaked in 2024, deliveries fell by almost 8% in 2025, which was still the second-highest total in the market\u2019s history. But today, rising construction costs, labor shortages and local compliance requirements combine to cut starts of fully affordable housing by 5.2% year over year in 2025, with the loss continuing in 2026, which saw fully affordable starts drop almost 20% year over year in Q1.<\/p>\n\n\n\n

That means deliveries, which totaled 91,841 units in 2025, will fall to 90,476 this year, followed by an average of 74,000 units per year in 2027 and 2028.<\/p>\n\n\n\n

Market conditions pose multiple challenges<\/h3>\n\n\n\n

Similar to their market rate counterparts, affordable housing projects are facing less favorable conditions, as \u201chigher construction costs, elevated interest rates and declining tax credit pricing have altered the economics of affordable housing development,\u201d the new national report says.<\/p>\n\n\n\n

Furthermore, the report adds, \u201capproval timelines remain extended in many high-cost markets, while funding programs and allocation processes can introduce additional uncertainty.\u201d<\/p>\n\n\n\n

New report provides insight<\/h3>\n\n\n\n

\u201cThe question going forward is how much increased funding and legislative efforts by states to reduce barriers to affordable housing construction will be offset by market conditions that have contributed to the drop in housing starts,\u201d the report says.<\/p>\n\n\n\n

Get insights into how this question will resolve in the Yardi Matrix Affordable Housing National Report for June 2026.<\/p>\n\n\n\n

April: The impact of targeted tax incentives<\/h2>\n\n\n\n

A new report<\/a> from Yardi Matrix examines the impact of tax incentives on the prospect of expanding the supply of affordable housing in the U.S.<\/p>\n\n\n\n

Federal housing policy incentivizes private developers to build and preserve income-restricted housing via the Low-Income Housing Tax Credit (LIHTC) program. The Yardi Matrix analysis illustrates how the differences between affordable and market rate rents drive decision-making about housing development and preservation.<\/p>\n\n\n\n

Analysis provides insights for housing investments<\/h3>\n\n\n\n

\u201cExamining rent relationships between affordable and market rate housing provides insights into when and where affordable housing investments may be most effective,\u201d the report states. \u201cUnderstanding these competitive environments is particularly important for policymakers that allocate scarce housing resources\u201d for new supply and preservation of existing affordable housing stock.<\/p>\n\n\n\n

DDA & market rate rental environments<\/h3>\n\n\n\n

The Yardi Matrix report addresses the affordable housing environment both within and outside of Difficult Development Area (DDA) tracts, an LIHTC designation intended to facilitate housing development where cost or income conditions tend to hinder development. In analyzing rents of affordable and market-rate properties, Yardi Matrix found that:<\/p>\n\n\n\n