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Costs and Policy Shifts Challenge Affordable Housing But Growth Expected in 2026, TD Bank Survey Finds
Survey of industry professionals reveals both barriers and opportunities ahead Half o...
About this update from Toronto-dominion Bank
[{"type":"text","content":"Costs and Policy Shifts Challenge Affordable Housing But Growth Expected in 2026, TD Bank Survey Finds\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n.bwlistdisc { list-style-type: disc }\n \n\n\n\n\n Survey of industry professionals reveals both barriers and opportunities ahead\n \n\n\n\n\n Half of affordable housing professionals believe market challenges will impact their deal pipelines in 2026. High construction costs (55%) and price increases from tariffs (39%) are cited as the biggest barriers to development. As a result, only 29% of professionals plan to expand housing developments next year, according to TD Bank’s survey of 238 participants at the Governor’s Conference on Housing and Economic Development in Atlantic City, New Jersey.\n \n\n Despite these concerns, professionals remain optimistic about the industry. More than half (52%) are confident that access to affordable housing will expand in 2026, and nearly two-thirds (62%) expect development to rise, with the strongest demand projected in:\n \n\n\n Multi-family housing (64%)\n \n\n Housing for seniors/elderly populations (58%)\n \n\n Workforce housing for essential and middle-income workers (50%)\n \n\n\n \"In this current environment, the greatest opportunities lie in meeting affordable housing needs in the communities we serve,” said Hugh Allen, Executive Vice President and Head of US Commercial Real Estate at TD Bank. “Segments like multi-family housing represent not only critical community needs, but also areas where strategic investment and collaboration can drive meaningful growth.”\n \n\n\n Finding the Proper Financial Support\n \n\n\n As affordable housing professionals balance market concerns with industry optimism, access to capital is top of mind. Policy updates that could affect lending and borrowing costs are a key focus: 60% of respondents say proposed changes to the Section 8 Housing Choice Voucher Program will influence their development plans, with 84% of those expecting a negative impact.\n \n\n Professionals say financial institutions can provide the most support by offering:\n \n\n\n Dedicated affordable housing lending programs or teams (27%)\n \n\n Flexible lending terms (26%)\n \n\n Bridge financing or gap funding solutions (25%)\n \n\n\n “As an equity provider through our purc...