Affordable housing should close the year on a high note. According to research from Moody's Analytics REIS, affordable housing should close the year with 1.2% of rent growth as the pandemic has had minimal impact on the sector. Moody increased its initial forecast for affordable housing rent growth from 1% to 1.2% because the housing segment already hit 1% rent growth in the third quarter.

While overall the affordable housing market has outperformed multifamily, Moody's report highlights markets that have struggled through the pandemic. Of the 100 markets tracked, 31 had negative affordable housing absorption. Odessa-Midland recorded the most significant decrease in affordable housing absorption this year, followed by Suburban Virginia and Phoenix. Negative absorption is likely due to limited supply and little availability through the pandemic.

Tulsa, Little Rock and Raleigh-Durham had the most significant increase in occupancy, rising by .8%, 0.5% and 0.4%, respectively. Some markets also saw significant rent increases that outpaced the national average or 1.2%. Daytona Beach and Omaha topped the list with rent growth of 1.4% and 1.3%. National affordable housing rents gained ground in the third quarter as vacancy rates stabilized.