-

KBRA Releases Research – CRE Secular Trends: The Multifamily Affordability Squeeze

NEW YORK--(BUSINESS WIRE)--KBRA releases research on the multifamily sector and the affordability challenges that it faces. While federal assistance programs minimized evictions on a temporary basis during the COVID-19 period, a major portion of lower-income renters’ disposable income is spent on rent, resulting in the current affordability crisis for many. Based on the most recent U.S. Census data, 22.9% of households spent at least 50% or more of their income on rent in 2021, which meets the Department of Housing and Urban Development (HUD) definition of “cost burdened.”

As higher-end multifamily properties have dominated recent new construction, moderate- and lower-income housing options have decreased for renters. According to the National Apartment Association (NAA) and National Multifamily Housing Council (NMHC), construction of smaller properties with fewer than five units—a source of more affordable housing—is becoming rarer, with 80% of new construction comprising five or more units in many markets. Some markets are looking to new initiatives to encourage the construction of smaller units, including revisions to zoning and parking ratios to make affordable housing construction easier.

According to KBRA’s report, to meet the demand for affordable options, developers may need to refocus on innovative redevelopment projects and property type conversions. However, community and government support will be essential in making the necessary changes to zoning and legislation to ensure these projects are viable.

The report is part of KBRA’s ongoing series on the secular trends that are transforming the “new normal” landscape in commercial real estate (CRE) across property types.

Click here to view the report.

Related Publications

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Allison Werry, Senior Director
+1 (646) 731-2325
allison.werry@kbra.com

Larry Kay, Senior Director
+1 (646) 731-2452
larry.kay@kbra.com

Roy Chun, Senior Managing Director
+1 (646) 731-2376
roy.chun@kbra.com

Business Development Contact

Michele Patterson, Managing Director
+1 (646) 731-2397
michele.patterson@kbra.com

KBRA

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Allison Werry, Senior Director
+1 (646) 731-2325
allison.werry@kbra.com

Larry Kay, Senior Director
+1 (646) 731-2452
larry.kay@kbra.com

Roy Chun, Senior Managing Director
+1 (646) 731-2376
roy.chun@kbra.com

Business Development Contact

Michele Patterson, Managing Director
+1 (646) 731-2397
michele.patterson@kbra.com

More News From KBRA

KBRA Releases Research – The Forward Look—European and UK Credit Views: Q4 2026

LONDON--(BUSINESS WIRE)--KBRA releases the latest quarterly report highlighting our European Macro Strategist Gordon Kerr’s view on key economic indicators, as well as what he identifies as the most influential factors driving credit markets in the upcoming quarter. The report also examines credit market valuations in the context of current and future market conditions. KBRA expects the key factors driving credit market conditions in Q4 to include several elements fighting for the outlook, from...

KBRA Releases Research – CMBS Loan Performance Trends: October 2026

NEW YORK--(BUSINESS WIRE)--KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the October 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS remained relatively stable at 7.7% in October, down 2 basis points (bps) from September, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) increased marginally by 4 bps. Compared to a year ago, delinquency...

KBRA Assigns Preliminary Ratings to Sierra Residential DAC

DUBLIN--(BUSINESS WIRE)--KBRA Europe (KBRA) assigns preliminary ratings to six classes of notes to be issued by Sierra Residential DAC, a static RMBS securitisation collateralised by predominantly first-lien, reperforming mortgage loans. As of 3 July 2026, the underlying collateral comprises a €353.5 million portfolio of seasoned residential mortgage loans, primarily secured by owner-occupied properties (95.3%), with the remaining 4.7% secured by second or holiday homes and non-residential prop...
Back to Newsroom