Affordable Housing Market Report 2026

The affordable housing market size has grown strongly in recent years. It will grow from $60.02 billion in 2025 to $63.29 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to rising urban population growth, expansion of government housing schemes, increasing migration to cities, growth of low-income households, availability of subsidized housing finance.

The affordable housing market size is expected to see strong growth in the next few years. It will grow to $80.2 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to increasing investments in affordable urban housing, rising focus on green building practices, expansion of smart city housing projects, growing use of digital mortgage platforms, increasing policy support for housing inclusion. Major trends in the forecast period include increasing adoption of public-private housing partnerships, rising focus on modular and prefabricated housing, growing use of digital housing allocation platforms, expansion of sustainable building materials, enhanced emphasis on cost-efficient housing designs.

The ready availability of home loans is set to be a significant contributor to the continued growth of the affordable housing market. Home loans, which involve borrowing a sum from a financial entity, such as a housing finance company, for purposes such as home construction, renovation, or the purchase of new or existing homes, plays a crucial role in providing financial assistance to individuals or families. This support enables them to acquire or build homes at a reduced cost, fostering increased homeownership and addressing challenges related to housing affordability. As of May 2023, data from the Federal Reserve Bank of New York indicates that total household debt rose by $148 billion (0.9%) to reach $17.05 trillion in the first quarter of 2023, with mortgage balances constituting $2.9 trillion. Therefore, the ease of access to home loans remains a driving force behind the growth of the affordable housing market.

Leading companies in the affordable housing sector are dedicated to crafting innovative and technologically sophisticated solutions to fortify their market position. For instance, in June 2023, AppFolio Inc., a US-based software company specializing in real estate management solutions, unveiled a suite of AI-powered capabilities and affordable housing solutions. These groundbreaking artificial intelligence features will be seamlessly integrated into affordable housing solutions, empowering property managers to elevate resident experiences. Tailored to meet the specific needs of clients overseeing affordable housing properties or units, this new solution encompasses compliance management, streamlining procedures, and integrating accounting operations for both conventional and affordable housing units on a unified platform.

In February 2025, Bromford Housing Group, a UK-based provider of affordable and social housing, acquired Flagship Housing Group for an undisclosed sum. Through this acquisition, Bromford intends to broaden its affordable housing portfolio, enhance development capacity, and strengthen its capability to deliver new homes and community services throughout England. Flagship Housing Group, also based in the UK, specializes in providing rental properties, community housing services, and new housing developments aimed at low- to moderate-income households.

Major companies operating in the affordable housing market include Skanska AB, The Related Group, L&T Construction, Volunteers of America, Shapoorji Pallonji & Company Private Limited, The Beacon Communities LLC, McCormack Baron Salazar, Prestige Group, The Michaels Organization, Amrapali Group, Pinnacle Housing Group, National Church Residences, BRIDGE Housing Corporation, Shriram Properties Ltd., Dominium, Herman & Kittle Properties Inc., Jonathan Rose Companies LLC, Provident Housing Limited, The Community Builders Inc., AHC Inc., TWG Development, Tata Realty And Infrastructure Limited, The Richman Group, LDG Development LLC, Signature Global Limited, NRP Group, Dantes Partners, XRBIA Developers Limited, Mercy Housing Inc.

North America was the largest region in the affordable housing market in 2025. The regions covered in the affordable housing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the affordable housing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The affordable housing market consists of revenues earned by entities providing housing services such as eviction prevention services, supportive care housing, transitional housing, property management, and financial assistance. The market value includes the value of related goods sold by the service provider or included within the service offering. The affordable housing market also consists of sales of microunits, accessory dwelling units, mobile homes, and single-resident occupancy (SRO). Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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