Walker & Dunlop Survey Highlights Sentiment Around Affordable Housing Policies, Funding and Supply

Survey was conducted among attendees at the annual AHF Live conference

For the second year in a row, Walker & Dunlop, Inc., one of the nation’s largest commercial real estate finance and advisory firms, conducted a survey of top finance executives in affordable housing to gauge their opinions on a variety of issues impacting the CRE industry, including government policies, the economy and funding.

Highlights of the survey results show overwhelming support for implementing regional changes to zoning policies to serve as a catalyst for boosting the housing supply. The results also indicate a bullish outlook by CRE leaders for increased investment in affordable housing in 2025.

The survey was conducted in November with attendees at the Affordable Housing Finance (AHF) Live conference, which brings together affordable housing developers, owners, management firms, and state housing agencies from across the country to share insights on the latest strategies and tools to help create and preserve much-needed housing. The majority of respondents to the anonymous survey were executives in senior leadership positions at some of the top firms and agencies involved in affordable housing development and financing.

Government Policies

• 84% of respondents do not support increasing trade tariffs as a way to benefit home builders and home buyers. They felt that international engagement should not be sacrificed for national self-interest. The 16% of “Yes” respondents believed that the U.S. should prioritize domestic needs.
• 94% of respondents think regional changes to zoning policies could help boost housing supply. Respondents were by far in support of seeing changes made to regional zoning policies, with the sentiment being that restrictive zoning practices act as barriers to development and limit the creation of housing supply.

Inflation & Interest Rates

• 55% of respondents feel the Fed was effective in combating inflation over the last year. "Yes" responses mostly indicated that recent rate changes, particularly two consecutive cycles of rate reductions, were beneficial. Those who did not feel the Fed was effective in stemming inflation reflected a broader, more cautious view of the entire year, focusing on the Fed’s stance over the long term.
  • In 2023, which didn’t see rate cuts, 93% of survey respondents didn’t think the Fed was doing enough to increase the supply of affordable housing. 75% of respondents actually didn’t think the Fed was done with interest rate hikes.

Housing Prices

• 89% of respondents think an increase in resources and supply can offset the rising prices for housing. Sentiment around “No” respondents felt there were better ways to manage pricing or housing affordability.

Investments in Affordable Housing

• 52% of respondents said they have seen an increase in investments (debt and equity) in affordable housing in the last year. There is a mix of optimistic and realistic views on what the next year will look like under the new administration. While some respondents were hopeful for improvements, others took a more cautious stance, anticipating challenges. This reflects the complexity of the affordable housing issue and the differing perspectives based on political, economic, regional, and demographic factors.
  • In last year’s survey, only 43% of the respondents said they had seen an increase in affordable housing investments during 2023.
• 70% of the respondents believe the appetite for investments in affordable housing will increase in 2025. With a mixed view of the level of investments seen in affordable housing in 2024, respondents are bullish that this will increase in 2025.
  • In the 2023 survey, 58% of respondents said they expected to see investments in affordable housing increase in 2024.

Sheri Thompson, executive vice president and head of affordable housing at Walker & Dunlop, emphasized the importance of staying connected with clients and gaining insights into the industry through collaborative efforts.

“The survey is a great tool to foster collaboration with our colleagues and get a pulse on our industry,” Thompson said. “Affordable housing deals are inherently complex, requiring creative solutions from debt to tax credit equity, soft funds to state agency funds in addition to the full spectrum of capital resources in between. Our team understands these complexities and we have built a platform that enables us to adeptly advise and help developers navigate them.”

Walker & Dunlop’s Affordable Housing Platform brings together a dedicated group of experienced specialists who provide our clients with solutions to achieve their unique affordable housing objectives. Our team has the deep expertise and capability to provide investment sales and capital advisory services, debt (HUD, Fannie Mae, Freddie Mac, other capital markets sources) and equity (LIHTC, conventional, programmatic joint-venture) financing, as well as opportunities to invest in the preservation and revitalization of affordable properties. To learn more about our capabilities and financing options, visit our website.

Methodology

Sample sizes for the 2024 questions ranged from 98-100 respondents.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

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