**The Quiet Truth About Affordable Housing: More is Being Built**
*Florin Petrut*
America’s affordable housing crisis has persisted for decades. The National Low Income Housing Coalition reports a concerning shortage of 7 million affordable units for approximately 10.8 million low-income families. Compounding the issue, the National Housing Crisis Task Force notes a 24% drop in rental units priced under $1,000 per month since 2012.
And yet, there is progress. A recent RentCafe report reveals that since 2020, nearly 310,000 affordable rental units have come online—approximately one-third of these were delivered in 2024 alone.
According to RentCafe Research Analyst and report author Florin Petrut, this surge wasn’t entirely surprising given a more favorable policy environment. “What stands out is the magnitude of the growth,” said Petrut. “A 73% increase in affordable housing construction between 2020 and 2024 is indeed unprecedented, particularly in high-cost markets like Seattle and New York City, where building affordable housing has long posed significant challenges.”
He notes, however, that the report focuses solely on buildings designated as affordable and does not include the growing number of units delivered through inclusionary zoning or mixed-income developments, which also enhance affordable stock.
**Catalysts Behind the Affordable Housing Growth**
Much of the recent construction momentum stems from increased public investment. The American Rescue Plan injected billions of dollars into housing programs via state and local fiscal recovery funds. State and municipal governments have added to these efforts by implementing incentives such as state housing tax credits, zoning reforms, and streamlined approval processes.
Another critical boost came in 2018, when amendments to the Low-Income Housing Tax Credit (LIHTC) program introduced the income-averaging provision. This change expanded eligibility, allowing rental projects to be made available to a broader range of incomes while still qualifying for tax credits, significantly improving project viability and economics.
**Leading Cities in Affordable Housing Development**
Seattle and New York City top the list of cities delivering the most new affordable units, followed closely by Austin, Texas. “These cities share a common set of fundamentals that have positioned them as leaders in affordable housing construction,” said Petrut. “They have strong housing demand, sustained public investment, and supportive policy frameworks.”
Seattle has benefited from voter-approved housing levies and a strong network of mission-driven developers. New York City leverages its extensive history in affordable housing finance, using local incentives and bond-financing tools to steadily expand inventory. Austin has taken advantage of housing bonds and state tax credits to enable large-scale developments.
San Antonio also demonstrated remarkable progress, recording a 222.5% five-year increase in affordable unit deliveries. Between 2000 and 2024, nearly one-quarter of all housing completed in the metro area was considered affordable. Key catalysts behind San Antonio’s success include the Strategic Housing Implementation Plan, the LIHTC program, and the partnership with the San Antonio Housing Trust Public Facility Corporation.
**Why the Headlines Remain Gloomy**
If more affordable units are being built, why do reports from the National Low Income Housing Coalition and others still ring alarm bells?
Petrut explains: “One key point is that affordable housing development still represents a relatively small share of overall apartment construction.”
For instance, in 2024, around 500,000 new multifamily units were delivered across the U.S., but only 91,000—approximately 18%—were classified as affordable. That’s a small dent in the 7.1 million-unit deficit currently facing low-income households.
Petrut emphasizes that recent trends are encouraging, and RentCafe data shows ongoing momentum. However, he cautions that truly closing the affordability gap will require maintaining this pace over the long term, alongside continued public investment and a stable financing environment.
*This article was adapted from an earlier version published on ApartmentBuildings.com.*
