Affordable housing has always been a stable investment asset through up and down economic cycles, but the pandemic has deepened demand and exacerbated supply constraints. The dynamic is pulling more investment capital to the market from both foreign and domestic investors.
“We have noticed that affordable housing tends to perform in times of economic uncertainty and in a growing economy,” John Williams, president and CIO at Avanath Capital Management, tells GlobeSt.com. “This is appealing to investors as it can act as a stabilizer in a portfolio and allow for diversification. Foreign and domestic investors alike continue to be attracted to US affordable housing for these reasons as it offers downside protection and is a durable investment option.”