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Affordable Housing Investments to Grow in 2025, But Economic Concerns Loom

Investments in affordable housing grew this year, but market participants remain concerned that certain factors may dampen future growth.

By Mario Marroquin | December 19, 2024 at 03:23 PM

While investor sentiment around financing for affordable housing has seemingly improved over 2023, a new survey from Walker & Dunlop suggests that market participants remain divided on how the sector will fare next year.

More than half of survey respondents reported an increase in debt and equity investments in affordable housing compared to last year, signaling a more favorable investment climate for 2025. However, some remain cautiously optimistic, anticipating that systemic challenges such as high interest rates and inflation may dampen the sector’s outlook.

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