Opening Doors to Opportunity: Investing in Affordable Housing

Emily Thomas, Head of Investing with Impact, discusses the U.S. housing affordability gap as a long-term investment theme. She outlines opportunities across public market fixed income, private real assets, and private credit that can generate diversification, stable cash flows, and tax-efficient income while addressing the housing shortage. - U.S. faces a structural shortage of 5 million homes with over 75% of listings unaffordable for typical households. - The median first-time homebuyer age rose from 33 to 40 in five years, delaying wealth building. - Public market strategies include municipal bonds, agency MBS, and other fixed income financing affordable housing. - Private market strategies include real assets (acquiring/developing affordable properties) and private credit (construction/rehab loans). - These investments can provide diversification, stable cash flows, and tax-efficient income. - The Low-Income Housing Tax Credit has supported over 90% of new affordable housing in recent decades. - Asset managers are creating mechanisms for renters to share in property value, such as Enterprise's Wealth Creation Fund. - Stable housing strengthens communities, supports economic mobility, and helps build generational wealth.