Impact Outlook for 2025
Dennis Shea is executive director of the J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center, a business and strategy consulting firm in Washington, D.C. that works with both major political parties to craft viable solutions that improve lives.
What do you see as the most critical policy issues related to impact for multifamily communities in 2025?
Our nation suffers from a severe shortage of affordable rental homes, a situation that has led to crushing rent burdens for millions of lower-income households. Fortunately, policymakers from across the political spectrum recognize that increasing affordable rental supply is critical if we are to make progress in solving this problem. That’s why enactment of the Affordable Housing Credit Improvement Act, which would expand federal support for and strengthen the Low-Income Housing Tax Credit program, is a top Terwilliger Center priority. This legislation has overwhelming bipartisan support, so we are optimistic that it can cross the legislative finish line in Congress sometime in 2025.
How is your organization focusing on this issue?
The United States has underbuilt housing by millions of homes since the Great Recession, leading to today’s historically high housing costs. So, highlighting the need to increase the supply of housing has been a big part of the Terwilliger Center’s programming and supporting supply-increasing initiatives like the Affordable Housing Credit Improvement Act and the bipartisan Neighborhood Homes Investment Act has been central to our advocacy efforts. Consistent with the “build more housing” theme, on June 18, 2025, the Center will be bringing together experts and policymakers from across the country when it convenes its fourth annual Summit on Housing Supply Solutions. Stay tuned for more details – attendance will be free!
What steps should multifamily impact stakeholders take regarding these policies as we begin the new year?
It’s critical for stakeholders to underscore the importance of the Low-Income Housing Tax Credit program in encouraging private investment in the construction and rehabilitation of rental homes that are affordable to some of our lowest-income families. Policymakers must understand that tens of thousands of affordable rentals simply won’t be built each year without the subsidy that the Housing Credit provides.
Anything else to add?
The impact of rising property insurance rates on housing affordability is a major emerging problem that is being experienced by developers and operators of affordable multifamily housing in communities across the country. At the Terwilliger Center, we are examining a range of potential federal options to help address this problem. We would, of course, welcome suggestions and input from the members of the Multifamily Impact Council.