Affordable Housing Surge Hits Record Highs

Affordable housing construction in the US grew 73% from 2015–2019 to 2020–2024.
2024 delivered 91,000 new affordable units, marking the highest annual total of the last decade.
Seattle led all metros, while San Antonio posted the fastest growth rate since 2020.
Income-restricted apartments accounted for nearly 14% of all new supply in 2024.

Key Takeaways

Unprecedented Growth Outpaces Market

According to RentCafe, the US delivered nearly 310,000 new affordable housing units in the past five years, with almost one-third completed in 2024. This marks a 73% increase over the prior five-year period, far surpassing the 36% growth seen in overall apartment construction. Affordable housing now makes up a greater share of new supply, reaching nearly 14% of all apartments built last year.

Affordable apartment completions reached a record high of 91,482 units in 2024 — more than triple the total from 2015 — marking the sharpest annual increase in the past decade.

Seattle Leads, Sun Belt Surges

Seattle delivered 14,290 new affordable apartments from 2020 to 2024, leading the nation. New York City followed closely, while high-growth markets like Austin, San Antonio, and Phoenix showed rapid jumps. San Antonio posted a 223% increase in affordable apartment completions, the largest percentage gain among major metros. Federal programs, state-level tax credits, and targeted grants have spurred this strong pipeline.

Seattle led in new affordable units, while San Antonio saw the fastest growth at 223% from 2020 to 2024.

Policy and Funding Drive Results

The American Rescue Plan, expanded Low-Income Housing Tax Credits, and state initiatives have fueled the building wave, helping offset development costs and keep rents in reach. Policy changes allowing broader income averaging made more deals viable, stabilizing rents long-term without sacrificing unit count.

Top Markets Detail Shift

Among top contributors, Seattle’s 24% affordable share outpaces most peers, reflecting not only an expansion in supply but also evolving living preferences in the city. New York’s output grew 185% in five years. Sun Belt markets like Austin and Charlotte doubled or tripled their totals, reflecting increased local demand and policy focus. Los Angeles, Miami, and the Bay Area each added thousands of affordable apartments to meet ongoing supply shortfalls.

San Antonio, Phoenix, and Charlotte led US metros in affordable housing growth, each posting over 190% increases from the previous five-year period.

Why It Matters

The surge in affordable housing construction signals a strategic shift in the multifamily sector. Developers, policymakers, and investors are placing a greater emphasis on affordable product amid enduring demand and rising construction costs. This momentum is expected to continue as funding sources remain robust and local governments maintain focus on housing affordability.