Affordable Housing Market to Reach USD $75.13 Billion by 2029 at 5.8% CAGR

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The Business Research Company’s Affordable Housing Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

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LONDON, GREATER LONDON, UNITED KINGDOM, November 25, 2025 /EINPresswire.com/ -- How Big Is The Affordable Housing Market In 2025?
The market size for affordable housing has seen significant growth in the past few years. Forecasts show expansion from $57.14 billion in 2024 up to $60.02 billion in 2025, indicating a compound annual growth rate (CAGR) of 5.0%. Factors contributing to this growth during the historical period include government subsidies and programs, lowered interest rates, increases in population, urban development, and initiatives focused on community development.

Expectations are high for the affordable housing market to experience substantial growth in the coming years, reaching an estimated size of $75.13 billion by 2029. This suggests a compound annual growth rate (CAGR) of 5.8%. Various factors are driving this growth, including policy changes, climate adaptability, novel financial plans, an emphasis on inclusive zoning, and housing sponsored by employers. During the forecast period, key tendencies are expected to be public and private collaborations, advancements in technology, tiny homes and micro apartments, intelligent and sustainable affordable housing, and combined residential and commercial developments.

Download a free sample of the affordable housing market report:
https://www.thebusinessresearchcompany.com/sample.aspx?id=12456&type=smp

What Are The Key Driving Factors For The Growth Of The Affordable Housing Market?
The plentiful access to home loans plays a critical role in propelling the growth of the affordable housing market in the future. These loans refer to the funds that someone borrows from a financial institution like housing finance businesses in order to construct, remodel an existing house, or buy a new or pre-owned home. Home loans provide financial assistance to individuals or families, enabling them to buy or build homes at a low cost, thereby increasing homeownership and addressing housing affordability challenges. For example, as reported by the Federal Reserve Bank of New York in May 2023, the total household debt rose by $148 billion (0.9%) to $17.05 trillion in the first quarter of 2023. The bank, a US-based entity of the Federal Reserve in charge of carrying out monetary policies, currently holds $2.9 trillion balances. Consequently, the abundant access to home loans fuels the growth of the affordable housing market.

Who Are The Key Players In The Affordable Housing Industry?
Major players in the Affordable Housing include:

• Skanska AB
• The Related Group
• L&T Construction
• Volunteers of America
• Shapoorji Pallonji & Company Private Limited
• The Beacon Communities LLC
• McCormack Baron Salazar
• Prestige Group
• The Michaels Organization
• Amrapali Group

What Are The Upcoming Trends Of Affordable Housing Market In The Globe?
Innovations in technology are emerging as a primary trend in the budget-friendly housing sector. Key players in the scene are aiming to offer innovative and technologically superior affordable housing options to bolster their market stand. For example, in June 2023, AppFolio Inc., a real estate management solutions firm based in the U.S., unveiled a range of AI-enabled capabilities and affordable housing options. The firm intends to incorporate these cutting-edge AI features into budget-friendly housing solutions, equipping property managers to augment tenant experiences. This contemporary affordable housing solution is engineered to satisfy the unique needs of clientele managing affordable housing properties or units. It encompasses compliance management, accelerated procedures, and the fusion of accounting operations for both conventional and affordable housing units on a single interface.

What Segments Are Covered In The Affordable Housing Market Report?
The affordable housing market covered in this report is segmented –

1) By Providers: Private Builders, Government, Public-Private Partnership
2) By Size Of Unit: Up To 400 square Feet, 400-800 Square Feet, Above 800 Square Feet
3) By Location: Urban, Rural
4) By Income Categories: Economically Weaker Sections (EWS), Middle Income Group (MIG), Lower Income Group (LIG)
5) By Population: Slum Population, Non-slum population

Subsegments:
1) By Private Builders: Large Real Estate Developers, Small And Medium Enterprises (SMEs), Non-Profit Housing Developers
2) By Government: National Housing Authorities, Local Government Housing Agencies, Social Housing Programs
3) By Public-Private Partnership (PPP): Joint Ventures Between Government And Private Developers, Cooperative Housing Initiatives, Community Development Projects

View the full affordable housing market report:
https://www.thebusinessresearchcompany.com/report/affordable-housing-global-market-report

Which Region Is Expected To Lead The Affordable Housing Market By 2025?
In 2024, North America led as the biggest region in the affordable housing market. The market report for affordable housing includes regions such as Asia-Pacific, Western Europe, Eastern Europe, South America, the Middle East, and Africa.

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