Yardi Matrix reveals key competitive conditions in U.S. affordable housing

Report documents factors impacting sector’s success in vying with market-rate properties

SANTA BARBARA, CALIF., Aug. 19, 2026 – Only about one-quarter of U.S. market-rate properties are competitively priced with affordable units, according to a new Yardi® Matrix study.

The study, based on a database of approximately 120,000 multifamily properties in 168 markets, found that the level of competition varies widely by market, submarket and metrics such as number of bedrooms.

Three key market characteristics largely determine competitive conditions, defined as the share of conventional apartment inventory priced closely enough to compete directly with affordable housing. They are the pricing premium in high-cost coastal markets, the influence of recent apartment supply on existing inventory, and the concentration of older workforce and low mid-range apartment stock.

“Some metros contain relatively little market-rate housing that is competitive with affordable developments, while others provide renters with a broad range of similarly priced market-rate alternatives,” the study notes.

In Boston, for example, the $2,900 average monthly market-rate rent is more than $1,000 above the average affordable housing rent, giving the metro a 0% rent competitiveness score. Other metros with low competitiveness include Los Angeles, San Francisco and San Diego.

Meanwhile, more than half of market-rate properties are competitive in metros such as Indianapolis, Detroit, Minnesota’s Twin Cities, and Texas metros Dallas and Austin.

A high level of competition in an area does not necessarily indicate lack of demand for affordable housing, the Yardi Matrix study notes. It may instead point to a need for certain types of affordable housing, improved property quality or preservation of existing stock. For operators, the report says, “competitiveness levels can determine how much they can raise rents or how to market their units.”

Read more about the competitive relationships between market-rate and affordable housing in the Yardi Matrix Affordable Housing National Report for August 2026.

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.

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