Impact Investors in Real Estate

Affordable housing is attracting investors looking to make an impact with their Real Estate portfolios. U.S and U.K affordable housing theme is trending.

Aug 2022

Real Assets

Affordable Housing Attracts Investors

In our real estate feed there were several search queries on US Low-Income Housing Tax Credits, 'Change-0f-Use' projects, and UK Social Housing. Research and case studies on the social impact of residential real estate is getting the most clicked. Affordable housing is clearly attracting investors.

ESG

The Positive Impacts of US LIHTC Investing

Aegon Asset Management

Aegon Impact Real Estate on RFPnetworks depicted by colourful windows of new student housing complex

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Investments in US Low-Income Housing Tax Credits (LIHTC) are an excellent example of impact investing. Impact investing seeks to create positive social or environmental benefits in addition to financial returns. To call an investment an “impact investment”, it is necessary to have an agreed upon understanding of what benefits are generated in addition to financial returns, as well as a mechanism for measuring those positive impacts.

In this paper we explain the basic workings of the program, investigate some of the positive effects it has on lower-income residents and society, and discuss ways these impacts could be quantified.

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