Nearly 45,000 proposed affordable housing units are on hold as they wait for critical funding to begin construction, according to a new report from Enterprise Community Partners.
As of the end of 2024, Enterprise’s research found that 44,723 affordable homes are in the near-construction pipeline. About 70% of the developments have applied to and secured some state funding, demonstrating the significant amount of time and resources already invested.
About 64% of the projects have applied for low-income housing tax credits (LIHTCs), and, if they receive funding in the next round of awards, they would likely start construction within six months, revealed the “2025 California Affordable Housing Pipeline” study.
“To solve California’s affordable housing crisis, we need to unlock the development pipeline and scale funding to meet the need. Only then can we even begin to ensure every Californian has a safe and stable affordable place to call home,” said Heather Hood, Enterprise vice president and Northern California market leader. “Our research demonstrates that California has invested significant time, energy, and resources into making affordable housing possible. I am confident that through prioritizing resources and strategies to prevent further delays, we can finish the job.”
Enterprise leaders noted the state’s housing crisis has been exacerbated by the devastating Los Angeles-area fires in January.
“Communities across Southern California have experienced immense loss, and one of the most important ways California can respond now is through securing the funding required to build and preserve affordable housing,” said Jimar Wilson, Enterprise vice president and Southern California market leader.
The research found that to unlock the pipeline and move this housing forward, there is an estimated need for $1.79 billion in state subsidies and $574 million in state tax credits. Every dollar the state invests in affordable housing can leverage significant amounts of federal and private dollars. On average, the state contributes $167,328 in subsidies to each affordable home it funds. For every $1 of state funds invested in developments, $4 of private and federal funds are leveraged, according to the study.
Officials also added that the report comes at a time when Gov. Gavin Newsom’s 2025-2026 budget proposal did not include funding for any of the state’s critical homelessness, affordable housing, and affordable homeownership programs.
Enterprise cited several actions that can unlock and scale the state’s affordable housing pipeline, including investing in sustained state funding through the budget, a major housing bond, and protecting funding for the Affordable Housing and Sustained Communities program; curbing costs by addressing system inefficiencies; and expanding the federal LIHTC.
