Affordable Housing

The affordable housing sector maintained a steady footing throughout 2025, supported by strong occupancy and continued rent growth in well-managed properties. Even as broader economic uncertainty persisted, affordable housing once again proved its resilience, reinforcing its reputation as a defensive asset class within commercial real estate.

The national housing shortage continues to challenge municipalities, developers, and community stakeholders. At the same time, many markets are experiencing elevated vacancies in office, retail, and industrial properties. This imbalance has renewed interest in adaptive reuse as a financially driven strategy to increase housing supply, reduce development costs, and unlock value in underperforming assets.

Whether they are recapitalization events, acquisitions/preservations, or new construction deals, it is all hands-on deck to ensure affordable housing is not left behind. Despite the challenges, there is optimism that there are viable ways to address the funding gaps, allowing affordable housing and eco-friendly development to continue progressing. The industry's ability to innovate and remain flexible will be key to overcoming these difficulties and achieving long-term success.

New Jersey Senate Bill 2188 introduces new requirements in which all New Jersey building owners, New Jersey Department of Health (DOH), New Jersey Department of Environmental Protection (DEP), and public water utilities will need to comply to prevent the transmission of Legionnaires’ disease.

Affordable Housing Updates Which issues should affordable housing developers and owners address in 2025? What is in the new ASTM's Standard Guide for Property Resilience Assessments? And how do Property Resilience measures affect insurance rates? Partner answers these questions and more in this edition of Affordable Housing Updates. Additionally, our team will once again be attending AHF Live in Chicago later this month. We hope to see you there!

What drives developers and investors to engage in affordable housing preservation and development? In 2025 and beyond, new developments will need to focus on implementing emerging technology and design approaches, allowing for efficiency and scale, while also mitigating climate risks.