NEW YORK—The Federal Reserve Bank of New York today released a case study focused on private investment vehicles in affordable multifamily rental housing. Investment managers surveyed for the case study plan to allocate 24% of projected capital raised between October 2024 and September 2026 to new development, a significant increase from 7% capital committed to new developments during the previous five years.
The case study, “Alternative Investments in Community Development: 2025 Case Study of Managers of Multifamily Affordable Housing Private Investment Vehicles,” is based on a nonrepresentative survey of 22 managers conducted between November 2024 and March 2025. Survey questions focused on the five-year period ending September 2024 and the managers’ plans for the two-year period ending September 2026.
Respondents said they had a total of 293,735 affordable housing units in their portfolios as of September 2024, with a median of 10,245 units per respondent. Of those units, 76% are income restricted and 24% are naturally occurring affordable housing.
The case study also found:
- Respondents raised a total of $18.4 billion in the five-year period.
- Respondents invested over $18.6 billion in total equity capital during the five-year period, with half of investment dollars in apartments serving households earning less than 60% of area median income.
- Banks and pension funds contributed half of total capital commitments to the respondents’ investment vehicles. The bulk of the remaining committed capital came from high-net-worth individuals, family investment offices, insurance companies, endowments, and foundations.
- Respondents said they expect to raise a total of $5.2 billion per year between October 2024 and September 2026, an increase from $3.7 billion per year in the prior five years.
“Addressing the nation’s shortage of affordable rental homes will require creative solutions,” said Jonathan Kivell, director of community investments at the New York Fed. “We hope the case study spurs more research on how private capital can affect the availability, quality, and cost of housing for low- and moderate-income families.”
The report follows a 2023 New York Fed case study on private investment vehicles in affordable housing. Data in the two studies are not comparable, as the first asked different questions and had different respondents. Both reports were written as part of the New York Fed’s Community Development efforts, which include a focus on household financial well-being.
