Highlights 

  • Walker & Dunlop reported heightened optimism across the affordable housing market heading into 2026. 
  • Ninety percent of surveyed executives expect investment appetite in affordable housing to rise in the next year. 
  • Economic policies such as tariffs continue to weigh on construction costs, cited by 70% of respondents. 

Walker & Dunlop’s (NYSE:WD) latest annual survey, conducted at the Affordable Housing Finance (AHF) Live conference, points to growing confidence in the affordable housing market. For the third consecutive year, the firm gathered insights from leading developers, owners, managers, and state agencies actively shaping the industry’s future. 

This year’s results show a meaningful shift in sentiment. A striking 90% of respondents expect investment appetite for affordable housing to increase over the next 12 months — a material rise from 70% in last year’s survey. Only 10% anticipate stagnant or lower appetite. The trend is already visible: 65% of respondents reported higher investment activity over the past year, compared with 52% the year prior. Participants credited expanding capital availability, improved investor engagement, and a more supportive policy backdrop as key drivers. 

HUD’s Role Viewed as Productive but Not Without Challenges 

The survey also examined how respondents perceive the effectiveness of the U.S. Department of Housing and Urban Development in supporting affordable housing construction. The feedback leans positive, with 8% calling HUD very effective and 51% noting it has been effective. However, 18% rated HUD as neutral, while 16% viewed the agency as ineffective and 2% very ineffective. Those holding negative views pointed to persistent regulatory hurdles, delays, and funding constraints that complicate development timelines. 

Still, respondents acknowledged that HUD’s programs remain an essential component in expanding the affordable housing supply. The sentiment reflects cautious optimism rather than complete satisfaction, emphasizing the need for continued program enhancements. 

Economic Policies and Tax Changes Shape Future Supply 

Tariffs and related economic policies continue to pressure affordable housing construction costs. Seventy percent of surveyed executives said such policies negatively affect development due to higher material and labor expenses. Meanwhile, 17% remained neutral, and 13% saw no notable impact. 

Respondents also expressed expectations around the One Big Beautiful Bill Act and its potential influence on housing production over the next five years. Twenty-nine percent foresee no or minor impact; 33% expect a moderate lift, and 25% anticipate a significant or major increase in development. Thirteen percent were unfamiliar with the bill’s provisions. Overall, the results suggest that many stakeholders view recent tax policy changes as supportive of long-term supply expansion. 

Sheri Thompson, executive vice president and head of affordable housing at Walker & Dunlop, emphasized that the survey reflects conversations with hundreds of industry leaders and offers meaningful guidance for navigating an evolving landscape. 

Conclusion 

Walker & Dunlop’s survey signals a clear rise in confidence across the affordable housing ecosystem as stakeholders prepare for 2026. With investment momentum accelerating, constructive (but mixed) feedback on HUD’s influence, and growing expectations tied to tax policy shifts, the industry appears poised for a period of meaningful development activity. 

Walker & Dunlops’ shares closed at USD 62.34, marking a 0.91% decrease from the prior session.