Costs and Policy Shifts Challenge Affordable Housing But Growth Expected in 2026, TD Bank Survey Finds

Executive Summary

• TD Bank surveyed 238 affordable‑housing professionals at the Governor’s Conference on Housing and Economic Development, revealing that 50% anticipate market challenges will affect deal pipelines in 2026.
• High construction costs (55%) and tariff‑driven price increases (39%) are identified as the top barriers, while only 29% plan to expand housing developments next year.
• Despite concerns, a majority remain optimistic: 52% expect greater access to affordable housing and 62% forecast increased development activity in 2026, especially for multi‑family (64%), senior housing (58%) and workforce housing (50%).

Key Details

• Survey Demographics: 238 participants representing affordable‑housing professionals across the United States.
• Key Barriers Identified:
• High construction costs – cited by 55% of respondents.
• Price increases from tariffs – cited by 39% of respondents.
• Development Plans for 2026:
• Only 29% intend to expand housing developments next year.
• 52% are confident that access to affordable housing will improve in 2026.
• 62% expect overall development activity to rise.
• Segments Expected to See Strongest Demand:
• Multi‑family housing – 64% of respondents.
• Housing for seniors/elderly – 58%.
• Workforce housing for essential and middle‑income workers – 50%.
• Policy Impact: 60% say proposed changes to the Section 8 Housing Choice Voucher Program will affect their plans, with 84% of those anticipating a negative impact.
• Desired Financial Support from Institutions:
• Dedicated affordable‑housing lending programs/teams – 27%.
• Flexible lending terms – 26%.
• Bridge financing or gap‑funding solutions – 25%.
• Executive Comment: Hugh Allen, Executive Vice President & Head of US Commercial Real Estate at TD Bank, highlighted the opportunity to meet community affordable‑housing needs and emphasized the role of tailored capital solutions.

Notable Quotes

“In this current environment, the greatest opportunities lie in meeting affordable housing needs in the communities we serve,” – Hugh Allen, Executive Vice President and Head of US Commercial Real Estate, TD Bank.

Materiality Assessment: Non‑Material – Neutral (survey provides market insight but no direct financial or operational impact on TD Bank).