Walker & Dunlop’s Latest Survey Shows Rising Confidence and Strong Investment Momentum in Affordable Housing Heading Into 2026
Walker & Dunlop, Inc. has released the findings of its annual industry survey, conducted during the Affordable Housing Finance (AHF) Live conference, revealing a significant surge in optimism surrounding the future of affordable housing investment and development. Now in its third year, the survey gathers insights from leading stakeholders shaping the affordable housing and commercial real estate (CRE) sectors. Respondents included developers, property owners, management executives, and state housing agency officials—professionals actively involved in the development, financing, and operation of affordable housing across the United States. The overall results reflect a bullish sentiment for continued growth in 2026, driven by expanding investor interest, evolving policy frameworks, and strengthened support from the U.S. Department of Housing and Urban Development (HUD).
Growing Investment Appetite in Affordable Housing
One of the most compelling findings from this year’s survey is the remarkable rise in investment confidence. Approximately 90% of respondents expect investment appetite for affordable housing to grow in the coming year, a significant jump from the 70% who held this view in the previous survey cycle. Only 10% believe investment will not increase, highlighting a widespread belief that market conditions, policy support, and capital availability are aligning to create a favorable environment for continued growth.
This rising confidence is not simply an expectation but is already being reflected in real-world activity. Nearly two-thirds of participants—65%—reported an increase in affordable housing investments, both in debt and equity, over the past year. This represents an encouraging improvement from the 52% who noted similar trends last year. The upward movement signals that investors, developers, and financial institutions are actively pursuing affordable housing projects, responding to both market demand and policy incentives aimed at addressing the nation’s long-standing housing affordability challenges.
Perceptions of HUD’s Effectiveness
Survey participants also weighed in on HUD’s role in supporting affordable housing construction and development. The feedback was generally positive, though nuanced. A combined 59% of respondents indicated that HUD has been either effective (51%) or very effective (8%), reflecting appreciation for the agency’s financing tools, policy efforts, and programmatic support for affordable housing.
However, not all respondents shared this positive assessment. Eighteen percent felt neutral, suggesting limited direct experience or mixed results when working with HUD. Meanwhile, 16% rated HUD as ineffective and 2% as very ineffective, highlighting ongoing frustrations related to regulatory complexity, the pace of administrative processes, and funding constraints. Additionally, 5% had no opinion, likely due to limited or indirect interaction with HUD programs. While the majority view HUD favorably, the response pattern suggests opportunities for improvement in streamlining processes and expanding program access to meet growing demand.
Economic Policies and Development Challenges
The survey also explored how current economic policies—particularly tariffs and supply chain-related costs—are affecting affordable housing development. A strong majority, 70%, believe that such policies negatively impact construction by driving up the costs of materials and labor. These rising expenses continue to be among the most persistent obstacles for developers trying to build or preserve affordable housing.
Seventeen percent of participants expressed a neutral stance, while 13% did not see these policies as having a negative effect, indicating that some industry professionals believe the cost burdens are being absorbed through other efficiencies or offset through existing financing and incentive programs. Nonetheless, the overarching view underscores the importance of broader economic policy decisions in shaping the viability and affordability of new construction projects.
Impact of Tax Bill Changes on Future Construction
Another key focus area was the expected effect of recent tax bill changes enacted under the One Big Beautiful Bill Act (OBBBA). The updates contained in the legislation have implications for tax credits, financing structures, and long-term incentives that directly influence affordable housing development.
Respondents offered varied predictions regarding the impact these changes will have on housing production over the next five years:
- 29% anticipate little to no impact, estimating a 0–5% increase in construction.
- 33% expect a moderate impact, projecting a 6–10% increase.
- 25% foresee a significant or major impact, predicting more than an 11% increase in affordable housing production.
- 13% reported being unfamiliar with the tax bill changes.
The results demonstrate that while awareness levels vary, a strong majority—58%—expect meaningful improvements in construction volume as tax incentives and financing enhancements take effect.
Industry Insights and Strategic Value
Sheri Thompson, executive vice president and head of affordable housing at Walker & Dunlop, emphasized the importance of the survey as a tool for understanding current market sentiment and guiding strategic planning.
“This survey offers us a real-time pulse and reflection of industry sentiment,” Thompson noted. “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 Continued Commitment
Walker & Dunlop’s Affordable Housing platform remains a comprehensive resource for clients navigating the complexities of developing and preserving affordable communities. The platform’s specialized team offers expertise in debt and equity financing—including LIHTC, conventional products, and joint-venture structures—alongside investment sales, advisory services, and preservation-focused investment opportunities. With deep industry knowledge and a collaborative client approach, the company continues to support developers nationwide in achieving their affordable housing goals.
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