Preserving affordability is increasingly being recognized as a strategy that not only supports communities but also strengthens the long-term performance of multifamily investments. In an interview, Ken McMackin, executive vice president of investments at Avanath Capital Management, explains how maintaining affordability commitments can drive resident stability, reduce turnover, and ensure consistent cash flow — ultimately protecting asset value even in volatile market conditions.
In what ways can preserving affordability actually increase or stabilize the long-term value of a multifamily asset?
Preserving affordability can directly enhance the long-term value of multifamily assets by driving operational stability and strengthening community resilience. We see that residents in affordable communities typically demonstrate higher rent payment consistency, which translates into reliable cash flow and reduced collection risk for owners and investors. Th