Walker & Dunlop Annual Survey Reveals Bold Optimism Driving Affordable Housing Market

BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc.’s annual survey, conducted at the Affordable Housing Finance (AHF) Live conference, revealed a notable optimism in investment activity uptick and enthusiasm in HUD’s role in supporting housing construction. For the third year in a row, Walker & Dunlop surveyed top executives in affordable housing to capture their perspectives on key issues shaping the CRE industry. Respondents were developers, owners, management firms, and state housing agencies from across the country who are actively engaged in affordable housing development and financing. Overall sentiment signaled a bullish outlook for continued growth in 2026.

Key survey takeaways include:

Investments in Affordable Housing

• This year, 90% of respondents believe the appetite for investments in affordable housing will increase in the next year, with only 10% saying it will not. This marks a clear rise in confidence compared to last year’s survey, where 70% expected an increase and 30% did not. The shift indicates growing optimism around capital availability, investor engagement, and the broader policy environment.
• 65% of respondents said they have seen an increase in affordable housing investments (debt and equity) in the past year, up from 52% who reported seeing an increase in investments last year. This momentum is not only anticipated but already occurring across many markets.

HUD Effectiveness

• Views on HUD’s performance skew modestly positive with 8% saying HUD has been very effective and 51% saying it has been effective in supporting affordable housing construction.
• 18% felt HUD was neither effective nor ineffective, suggesting mixed or limited direct experiences.
• 16% said HUD was ineffective and 2% very ineffective, reflecting frustration with regulatory complexity and funding limitations.
• 5% had no opinion, likely due to limited interaction with HUD programs.

Economic Policies

• 70% of respondents believe economic policies—such as tariffs—negatively affect affordable housing development. Respondents largely pointed to higher material and labor costs as barriers to construction.
• 17% were neutral, and 13% did not see tariffs or similar policies as having a negative impact, suggesting that some believe cost impacts are absorbed or offset in other ways.

Tax Bill Changes & Future Housing Construction

• Respondents generally believe recent tax bill changes under the One Big Beautiful Bill Act (OBBBA) will support increased affordable housing production over the next five years. ^¹
  • No or Minor Impact (0–5% increase): 29%
  • Moderate Impact (6–10% increase): 33%
  • Significant or Major Impact (11%+ increase): 25%
  • Not familiar with the tax bill changes: 13%

Sheri Thompson, executive vice president and head of affordable housing at Walker & Dunlop, highlighted the value of understanding market trends and investor sentiment to guide strategic decision-making.

“This survey offers us a real-time pulse and reflection of industry sentiment,” Thompson said. “We held over 100 meetings at AHF Live and spoke with more than 300 clients. The survey results truly reflect what we’re hearing in those conversations. This insight matters and helps our team provide actionable guidance, anticipate trends, and support developers in making informed decisions in today’s dynamic affordable housing landscape.”

Walker & Dunlop’s Affordable Housing platform brings together a dedicated group of affordable specialists who provide our clients with solutions to achieve their affordable housing objectives. The team has the deep expertise and capability to provide debt and equity financing (LIHTC, conventional, and programmatic joint-venture), investment sales and advisory services, 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 size for 2025 was 115 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 and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

¹

No or Minor Impact (0–5% increase): 29% (6% no impact, 23% minor positive).
Moderate Impact (6–10% increase): 33%.
Significant or Major Impact (11%+ increase): 25% (17% significant, 8% major).
Not familiar with the tax bill changes: 13%, reflecting uneven awareness of policy details across the industry.