Home›Real Estate›Industry›Social housing providers expect to rely more on debt t…

Social housing providers expect to rely more on debt to grow

A survey of 30 providers found 86% expect federal funding to stay flat or fall next year, while 90% project rising operating costs.

Reported · Written up by our desk · Industry

Social housing providers are planning portfolio growth by leaning more on debt as operating costs rise and federal funding faces potential cuts, according to a new report by S&P Global Ratings cited by Bisnow.

Bisnow reports that in a survey of 30 social housing providers, 86% of respondents expect either no change or a decrease in federal funding next year, and about 90% are projecting rising operating costs.

Despite the cost pressure, many providers say they are pursuing expansion, with 54% considering issuing public debt over the next year, mainly to buy or build housing.

The report also found that the median credit rating for 40 public housing agencies and 11 nonprofit developers is an A+, indicating strong capacity to meet financial commitments but greater susceptibility to adverse economic conditions.

More like this

Sources