While institutional adoption of affordable housing has historically been slow, growing opportunities and favorable trends suggest it will eventually become a mainstream investment option. Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group, which has $1.9 billion assets under management, discusses in an interview with IREI the resilience and stability of affordable housing compared with other real estate asset classes. He highlights the sector’s fragmentation, small project sizes, and regulatory complexities as barriers to entry, while noting that recent policy adjustments and public-private partnerships are beginning to attract more institutional capital.
Why has institutional-investor adoption been so slow? What needs to change for affordable housing to scale at an institutional level?
I think it’s a very fragmented space, and that’s one reason it has kept out institutional investors. A lot of the check s
