Survey of industry professionals reveals both barriers and opportunities ahead

Half of affordable housing professionals believe market challenges will impact their deal pipelines in 2026. High construction costs (55%) and price increases from tariffs (39%) are cited as the biggest barriers to development. As a result, only 29% of professionals plan to expand housing developments next year, according to TD Bank’s survey of 238 participants at the Governor’s Conference on Housing and Economic Development in Atlantic City, New Jersey.

Despite these concerns, professionals remain optimistic about the industry. More than half (52%) are confident that access to affordable housing will expand in 2026, and nearly two-thirds (62%) expect development to rise, with the strongest demand projected in:

• Multi-family housing (64%)
• Housing for seniors/elderly populations (58%)
• Workforce housing for essential and middle-income workers (50%)

"In this current environment, the greatest opportunities lie in meeting affordable housing needs in the communities we serve,” said Hugh Allen, Executive Vice President and Head of US Commercial Real Estate at TD Bank. “Segments like multi-family housing represent not only critical community needs, but also areas where strategic investment and collaboration can drive meaningful growth.”

Finding the Proper Financial Support

As affordable housing professionals balance market concerns with industry optimism, access to capital is top of mind. Policy updates that could affect lending and borrowing costs are a key focus: 60% of respondents say proposed changes to the Section 8 Housing Choice Voucher Program will influence their development plans, with 84% of those expecting a negative impact.

Professionals say financial institutions can provide the most support by offering:

• Dedicated affordable housing lending programs or teams (27%)
• Flexible lending terms (26%)
• Bridge financing or gap funding solutions (25%)

“As an equity provider through our purchase of Low-Income Housing Tax Credits or through the provision of construction financing, tailored capital solutions by TD Bank can be the difference between stalled projects and much-needed affordable housing,” Allen said. “With all eyes on development pipelines, financial partnerships are critical to keeping growth on track and delivering the housing our communities urgently need.”

About TD Bank, America's Most Convenient Bank^®

TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth^®. TD Bank is headquartered in Mount Laurel, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Instagram at www.instagram.com/TDBank_US/.

TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10 North American bank. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.

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