Across the country, uncertainty is a common challenge facing affordable housing, according to BBG.
Shifting tax policy, rising insurance premiums and widening regional disparities create barriers to renovation and new development. And as the demand for affordable units continues to surge, the tools to deliver them are under pressure.
BBG’s white paper, “Affordable Housing in 2025: A Regional Perspective,” explored how these pressures are playing out in key markets.
Drawing on the expertise from BBG valuation experts nationwide, the paper dives into five geographic regions and highlights how local conditions are affecting affordable housing development, investment and valuation.
“The BBG white paper looks at how the national market is changing and what that means for different regions,” BBG’s Mary Ann Barnett, senior managing director, Affordable Multifamily Practice leader, told Valuation Review. “It highlights the biggest challenges, exciting breakthroughs, and the tools — like funding and regulations — that help get projects off the ground. By understanding what’s working and where, the report helps guide smarter, more sustainable solutions for the future.”
Takeaways from the research and data reflected in the white paper showed, for one, insurance volatility is now a feasibility issue. In places like Colorado and Arizona, wildfire risk and carrier exits are increasing insurance premiums and causing some deals to pause or restructure.
Zoning is both a barrier and an opportunity, according to the white paper study. It explores reform efforts in Minneapolis, Salt Lake City, and the New York suburbs, where zoning changes are being used to unlock density and support mixed-income housing.
Additionally, year-15 rehabs are reshaping markets. In the Midwest and Northeast, a wave of maturing LIHTC projects is creating opportunities for rehabilitation and forcing conversations about long-term affordability and tax reassessment risk.
The white paper also shared that innovative capital stacks are emerging.
“Affordable multifamily housing is a national imperative, but it's also a local challenge. Regional differences in policy, financing and land costs, and community priorities make one-size-fits-all solutions impossible,” Barnett added. “As the sector evolves, continued innovation and a deep understanding of market-specific factors will remain critical to the success of meeting the challenge. Without widespread acceptance of the fact that additional affordable housing and preservation of existing product is needed at all price points and in all locations, progress will be slow.”
In Phoenix, GPLET tax abatements are layered with HUD HOME funds and nonprofit uses. In Seattle, employer-funded housing is being paired with MFTE programs to support workforce tenants.
The paper also included a regional hotspot map and highlighted policy experiments worth watching, including Ohio’s valuation law and Florida’s Live Local Act.