As the real estate investment environment continues to navigate challenges, investors are seeking ways to diversify allocations to affordable housing. Impact investment strategies such as affordable housing have long been known for delivering positive social and environmental changes, however, the economic benefits of U.S. affordable housing remain misunderstood by many investors.
What does U.S. affordable housing offer investors?
The U.S. affordable housing sector remains an attractive investment strategy within commercial real estate, and an effective diversifier among housing investments given the sector’s economic resilience compared with other property types. The essential need for housing remains steady throughout economic cycles given the limited supply of affordable units and lack of housing starts, and this resiliency extends to recessionary environments.
An investment in affordable housing can provide investors the opportunity to achieve attractive risk-adjusted returns while demonstrating direct and positive social and environmental impact. Additionally, the durability of rental income in the sector is supported by strong market demand and government subsidies, offering greater stability than traditional real estate.
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Supporting documents
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