State of Investment in Affordable Housing

This investor survey aims to provide better understanding of investors’ exposure to and perception of a ordable housing, and to identify opportunities and challenges to increase capital flow to the sector.

Although 80 percent of surveyed investors have some exposure to affordable housing in emerging markets, only 30 percent of those surveyed have decent exposure in the sector (over 5 percent of their portfolio). Currently, some key barriers to increased investment in the sector are the need for greater choice of products/vehicles/pipeline (45 percent of respondents) and a better track record/data series (24 percent of respondents). However, 50 percent of respondents expressed the desire to see affordable housing comprise 5-25 percent of their portfolio. In other words, there is a strong opportunity to increase the flow of capital into the sector. Further, 60 percent of investors in affordable housing say these investments are meeting or exceeding their expectations, and a further 20 percent say it is too soon to make a call, so there is a strong opportunity to catalyze this group of satisfied investors.