State of Investment in Affordable Housing

This publication is based on the results of a survey conducted among leading impact investors from Europe and the USA in emerging and frontier markets, with a particular focus on: 1) Investors’ current activity in housing; 2) Plans for investments into the sector; and 3) Opportunities and perceived risks from an investor’s perspective.

This survey, based on a sample of investors, aims to provide a snapshot of the current exposure of some of the leading impact investors, as well as insights that support the discussion about what is required to make more investment funds available in the market so that financing to improve the housing of low-income people can continue to expand. Some of the key findings include:

• 80% of surveyed investors have some exposure to affordable housing in emerging markets; however only 30% of those surveyed have decent exposure in the sector (over 5% of their portfolio);
• Some key barriers to increased investment in the sector are the need for greater choice of products/vehicles/pipeline (45% of respondents) and a better track record/data series (24% of respondents);
• 50% of respondents expressed the desire to see affordable housing comprise 5-25% of their portfolio. 
• 60% of investors in affordable housing say these investments are meeting or exceeding their expectations, and a further 20% say it is too soon to make a call.