**The Quiet Truth About Affordable Housing: More Is Being Built**
*By Connect CRE Staff*
*Florin Petrut*
America has long grappled with an affordable housing crisis. The National Low Income Housing Coalition reports a staggering shortage of 7 million affordable homes for the country’s 10.8 million extremely low-income families.
Compounding the challenge, the National Housing Crisis Task Force revealed that since 2012, the number of rental homes available for less than $1,000 per month dropped by 24%. These figures paint a grim picture—but recent data suggests a silver lining.
According to a RentCafe report, nearly 310,000 affordable rental units were added nationwide between 2020 and 2024, with almost one-third delivered in 2024 alone.
Florin Petrut, RentCafe’s research analyst and author of the report, told Connect CRE that the surge was not entirely surprising, considering increased support from housing policies. “What stands out is the magnitude of the growth,” he said. “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.”
The report focused strictly on purpose-built affordable rental developments, excluding inclusionary zoning and mixed-income projects that, while important, were not part of this analysis.
**Policies and Reforms Driving Momentum**
One of the primary catalysts of this upswing is the American Rescue Plan, which funneled billions in funding via state and local fiscal recovery programs into affordable housing construction. Alongside federal initiatives, many states and cities introduced their own incentives—ranging from tax credits and zoning reforms to streamlined development approvals.
Another important component is the 2018 change to the Low-Income Housing Tax Credit (LIHTC) program. The income-averaging provision allowed developments to qualify for tax credits while serving a broader range of tenant incomes—giving developers more financial flexibility and bolstering the viability of their projects.
**Leading the Way: Seattle, NYC, and Austin**
Seattle and New York City topped the list of cities adding the most new affordable housing units since 2020, followed closely by Austin, Texas.
“These cities share foundational strengths,” Petrut explained. “They benefit from strong housing demand, consistent public investment, and policy frameworks that promote affordability.”
Seattle supports its efforts through voter-approved housing levies and an established network of nonprofit developers. New York City leans on its deep experience in affordable housing financing, utilizing local incentives and municipal bond programs. In Austin, local bonds and state-level tax credits have spurred the development of large-scale affordable projects.
San Antonio is another notable success story. The Texas city saw a 222% increase in affordable housing deliveries over the past five years. Between 2000 and 2024, nearly a quarter of all housing built in the metro area was classified as affordable. Key contributors include the city’s Strategic Housing Implementation Plan, use of LIHTC tools, and collaborations with the San Antonio Housing Trust Public Facility Corporation.
**Still Not Enough**
Despite the progress, major housing advocates maintain that much more work is needed. Petrut noted a critical detail: while affordable housing construction is growing, it still represents a small portion of total multifamily development.
In 2024, of the 500,000 multifamily units completed in the U.S., only 91,000—about 18%—were classified as affordable. That figure barely begins to address the 7.1 million unit shortfall outlined by national housing advocates.
While the recent surge is cause for cautious optimism, Petrut emphasizes that bridging the affordability divide will require a sustained high pace of construction over many years. Continued public investment and long-term financial stability in the sector are also essential.
“We’re seeing encouraging trends,” Petrut said, “but true progress depends on maintaining this momentum.”
*This article originally appeared on ApartmentBuildings.com.*
