The outlook for affordable housing at the end of 2025 was neutral, but the sector “faces a complex landscape” in 2026, according to a December report from Fitch Ratings.
The ratings agency noted that 2025 saw no downgrades and two upgrades to sector entity ratings. As of Dec. 1, approximately 93% of Community Development & Social Lending ratings had stable rating outlooks, 2% had negative rating outlooks and 5% had positive outlooks, the company said.
This year will be “marked by significant federal policy shifts, economic headwinds and evolving funding dynamics,” wrote Senior Director Karen Fitzgerald, CFA. “These changes present opportunities to expand affordable housing supply and stimulate private investment, especially if paired with effective gap financing at the state and local levels.”
McKnights Senior Living
by Kathleen Steele Gaivin
January 5, 2026