BLOG | INVESTING WITHOUT COMPROMISE

TOPIC

THE OPPORTUNITIES OF INVESTING IN AFFORDABLE HOUSING: PART 2.

Paul Hwang By Paul Hwang, Investment Analyst, IMPACT Community Capital

In our last blog, IMPACT presented analysis of the performance potential of affordable housing investments in the post-2008 era. In this follow-up blog post, we’ll examine another opportunity for institutional investors seeking entry into impact investing: The diversification attributes of affordable housing investments. As a sub-sector of the mortgage-backed securities (MBS) market, affordable housing offers additional diversification due to particular characteristics attributable to the affordable housing sector. Generally, that the MBS sector has benefited from strong U.S. real estate fundamentals and favorable supply/demand dynamics; further, the affordable housing sub-sector also benefits from the support of federal low-income housing tax credits (LIHTC) and steady demand for low-income housing. The results have demonstrated solid...

Read more