The New York Fed’s Community Development team promotes economic growth and financial stability for low- and moderate-income communities and individuals. As part of that work, the team has been studying private investments in affordable housing.

Its June 2025 case study, “Alternative Investments in Community Development: 2025 Case Study of Managers of Multifamily Affordable Housing Private Investment Vehicles,” is based on a survey of 22 managers of private investment vehicles in multifamily affordable housing.

The firms in the survey raised a total of $18.4 billion during the five-year period ending September 2024. Respondents said they had a total of 293,735 affordable housing units in their portfolios, 76% of which had income restrictions.

The case study also found:

• Investment managers surveyed for the case study plan to allocate 24% of anticipated commitments between October 2024 and September 2026 to new development, a significant increase from 7% capital committed to new developments during the previous five years.
• Banks and pension funds contributed half of total capital commitments to the 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.

The case study builds on a 2023 New York Fed
case study
on the same topic. Data in the two studies are not comparable, as the first asked different questions and had different respondents.

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