Affordable housing executives report rising optimism about increased investment activity and renewed confidence in the Department of Housing and Urban Development’s (HUD’s) support for housing development, according to a new Walker & Dunlop survey.
For the third year in a row, the firm surveyed affordable housing leaders at the AHF Live conference in November to capture their perspectives on key issues shaping the industry.
Walker & Dunlop surveyed 115 developers, owners, management firms, and state housing agencies from across the country who are actively engaged in affordable housing development and financing. Overall sentiment signaled a bullish outlook for continued growth in 2026.
Ninety percent of respondents said the appetite for investments in affordable housing will increase next year, with only 10% saying it will not. This is a rise in confidence compared with last year’s survey when 70% expected an increase and 30% did not.
In addition, 65% of respondents said they have seen an increase in affordable housing investments (debt and equity) in the past year, up from 52% who reported seeing an increase in investments in 2024.
“This survey offers us a real-time pulse and reflection of industry sentiment,” said Sheri Thompson, executive vice president and head of affordable housing at the firm. “We held over 100 meetings at AHF Live and spoke with more than 300 clients. The survey results truly reflect what we’re hearing in those conversations. This insight matters and helps our team provide actionable guidance, anticipate trends, and support developers in making informed decisions in today’s dynamic affordable housing landscape.”
The survey also gauged sentiment in several other areas, including:
HUD Effectiveness:
- Views on the agency’s performance skew modestly positive, with 8% saying HUD has been very effective and 51% saying it has been effective in supporting affordable housing construction;
- 18% felt HUD was neither effective nor ineffective, suggesting mixed or limited direct experiences;
- 16% said HUD was ineffective and 2% very ineffective, reflecting frustration with regulatory complexity and funding limitations; and
- 5% had no opinion, likely due to limited interaction with HUD programs.
Economic Policies
- 70% of respondents believe economic policies—such as tariffs—negatively affect affordable housing development. Respondents largely pointed to higher material and labor costs as barriers to construction; and
- 17% were neutral, and 13% did not see tariffs or similar policies as having a negative impact, suggesting that some believe cost impacts are absorbed or offset in other ways.
Tax Bill Changes and Future Construction
- Respondents generally believe recent tax bill changes under the One Big Beautiful Bill Act will support increased affordable housing production over the next five years.
- No or Minor Impact (0% to 5% increase): 29%;
- Moderate Impact (6% to 10% increase): 33%;
- Significant or Major Impact (11%-plus increase): 25%; and
- Not familiar with the tax bill changes: 13%.
Walker & Dunlop is one of the largest commercial estate finance and advisory firms in the United States and internationally.
Presented by Affordable Housing Finance and Questex, AHF Live is the premier conference serving affordable housing developers, owners, and other industry stakeholders.