Episode 51: TD Bank Survey Shows Developer Optimism Despite Cost Challenges
TD Bank's 2026 survey finds 70% of affordable housing developers expect increased production despite persistent cost pressures and policy uncertainty.
From Spring Street Management Group, this is The Spring Street Brief — your daily briefing on affordable housing in America. Today we discuss TD Bank's 2026 Affordable Housing Survey and market sentiment.
- Nearly 70% of developers expect to increase affordable housing production in 2026
- 85% report material and labor costs exceeding projections from 18 months ago
- Insurance costs emerging as new pain point, especially in climate-vulnerable regions
- Average development timeline stretched to 36 months from land acquisition to lease-up
- Strong rental demand and stable LIHTC equity pricing provide confidence
- 30% of developers exploring modular or prefabricated construction, up from 18% in 2024
Realistic cost projections and contingency reserves are essential to successful deal execution in this environment.
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Keywords: TD Bank, developer survey, affordable housing, construction costs, insurance costs, development timeline, LIHTC equity, modular construction, prefabricated housing, HOME program, CDBG, gap financing, California, Massachusetts, Colorado, rental demand, cost containment, syndicator, investor, tax credit pricing, Spring Street Management Group
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