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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 32 December 2025 F E A T U R E S T O R Y OPTIMISM MEETS REALITY IN AFFORDABLE HOUSING As optimism grows for expanded access and development, rising costs, regulatory uncertainty, and widening shortages challenge affordable housing leaders heading into the new year. B y A N D R E W WA R R E N T he affordable housing crisis has been years in the making. As we head into 2026, developers, financial institutions, and communities alike are seeking innovative ways to bridge the gap between demand and supply. Meeting this need also fuels economic growth, creating jobs, stimulating development, and strengthening neighborhoods. Finding Hope in a Challenging Market D espite the headwinds expected in 2026, affordable housing profes- sionals remain cautiously optimistic about the sector's potential. A TD Bank survey of 238 participants attending the Governor's Conference on Housing and Economic Development in Atlantic City, New Jersey, revealed that 52% of respondents are confident that access to affordable housing will expand next year, while 62% anticipate an uptick in development activity. The conference brought together leaders and innovators from across New Jersey's public and private sectors involved in housing and economic development. This optimism, however, is tempered by persistent structural challenges. The survey identified the strongest projected demand in multifamily housing (64%), housing for seniors and elderly popu- lations (58%), and workforce housing targeting essential and middle-income workers (50%). The ability to meet these needs continues to be constrained, with the biggest barriers to development being mounting construction costs (55%) and price hikes tied to tariffs (39%). As a result, only 29% of respondents plan to expand their housing developments in 2026, underscoring a tension between aspiration and feasibility. The challenges are not uniform across the country, differing in urban and rural markets. States such as New York, Florida, Texas, and California, which are each facing affordability crises in both urban and rural markets, illustrate the diversity of local barriers. In large metropolitan areas, the high cost of land and complex permitting processes slow development, while in rural regions, the scarcity of builders and inadequate infrastructure com- pound the problem. Still, affordable housing profession- als are finding creative ways to adapt. Transit-oriented developments that place residents closer to jobs and public transportation are gaining traction, offering a model that links housing stability with economic mobility. Simi- larly, adaptive reuse, which transforms underutilized commercial spaces such as malls, schools, and office buildings into residential units, is emerging as a practical and sustainable strategy to expand housing supply more quickly. These approaches demonstrate a shift in mindset: from building outward to reimagining what already exists. As one New Jersey developer observed, "We have some of the most developed land in the state—it's just not developed for today." That sentiment captures the industry's central challenge A N D R E W W A R R E N is the head of TD Bank's Community Development Lending vertical within the Commercial Real Estate group. His team finances the new construc- tion and preservation of affordable housing and community facilities across the bank's footprint from Maine to Florida. Warren's team has the subject-matter experts and key product partners responsible for originating Community Development Loans (CDLs) that also leverage investments made by the bank's Community Capital Group. The group works with for-profit, non-profit, and governmental agency developers to support the bank's Community Reinvestment Act (CRA) and Community Impact Plan (CIP) efforts. As a volunteer, he works with and serves on the boards of non-profits and a Community Development Finance Institution (CDFI) that focus on increasing the supply of affordable housing and supportive housing and reversing food insecurity in underserved communities. Originally from Detroit, Warren graduated from Cornell University and currently lives on the Upper West Side in New York City with his family.