Adobe Stock/Sundry Photography

Affordable housing completions are expected to peak at a multi-year high in 2025, reaching 78,377 units, about 12.6% higher than recorded last year, according to Yardi Matrix.

However, the momentum will be short-lived as 2026 deliveries are projected to fall to 64,745 units.

"The need for affordable housing has accelerated in recent years, and that is not likely to change as interest rates remain high and construction of for-sale housing lags historical levels. Despite that demand, the decline in starts signals fewer affordable multifamily deliveries in the years following 2025," said Paul Fiorilla, director of research for Yardi Matrix.

Six markets are slated to top 2,000 fully affordable deliveries this year. Austin, Texas, leads the way with 3,452 units, followed by Los Angeles (2,752 units) and Brooklyn, New York (2,701 units). Phoenix (2,688 units), Miami (2,037 units), and Seattle (2,018 units) round out the list.

Affordable construction starts shrank by 28.7% year over year in 2024, clocking in at 66,000. Although facing many of the same woes, market-rate starts dropped at a steeper angle, falling 47% in 2024, according to Yardi Matrix.

The affordable sector's share of market-rate multifamily starts stood at 18.8% in 2024, up from 14.2% the year before.

Yardi Matrix's affordable database encompasses more than 25,000 fully affordable properties comprising more than 3.3 million units. Affordable assets are defined as properties that limit rents as a condition of a tax credit and/or subsidy.