Broadly popular government policies face financial and bureaucratic challenges
SANTA BARBARA, CALIF., July 2, 2025 – A new Yardi® Matrix report outlines the impact of government programs on a U.S. affordable housing market that falls 2 million to 5 million homes short of the number needed.

The report documents that about 14,000 of the 26,000 fully affordable multifamily properties in the Yardi Matrix database use some form of federal, state, county or municipal incentives. These subsidy programs encompass tax credits and deferrals, low-cost financing, grants and other assistance for low-income households, farm workers, the disabled and others.
Key challenges to increasing affordable housing stock include rising development and construction costs, complex zoning and environmental regulations, and burdensome paperwork. “Public funding is an essential piece of meeting the population’s need for affordable housing,” the report notes, but “simplifying the building process is critical.”
Regarding the federal government, the most active funding source for affordable housing, the tax bill under consideration in Congress increases Low-Income Housing Tax Credit funding and expands credits for hard-to-reach areas, although it would reduce direct renter subsidies, community block grants and several loan programs.
Learn more about the current state of U.S. affordable housing programs in the new National Affordable Housing Report from Yardi Matrix for July 2025.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.