This research paper from the National Bureau of Economic Research tests whether affordable rental housing delivers excess risk‑adjusted returns relative to higher‑rent properties across the United States, Belgium, and the Netherlands. Using detailed property‑level data, the authors find that low‑rent multifamily consistently earns higher annual net returns than high‑rent assets. The study also finds that cash flows for affordable properties fall less or even rise in recessions, and do not show higher mortgage default rates.
For institutional investors and policy makers, the study directly challenges the assumption that lower‑rent housing weakens performance and positions the affordable multifamily asset class as a compelling alpha‑generating, impact‑aligned allocation
Authors: National Bureau of Economic Research, University of Antwerp, Erasmus School of Economics, and Columbia Business School
Publication Date: 2025
