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rent growth and increased vacancies. Now, developers and construction firms are being more cautious and producing multifamily projects in locations where buyers and renters will thrive. Projects are not only being developed to satisfy renters and buyers for 2026, but to keep them there for the long run. As we work within the market-rate and affordable housing sector, we are exploring how these markets are both experiencing demand and supply setbacks.
Affordable housing
Much of R. D. Olson’ s portfolio is in California, where the need for affordable housing continues to grow due to high costs of living. Thus far, the state has only been producing around 13,000 affordable housing units per year, whereas it needs approximately 125,000 according to All Home. In 2026, the state will be looking to pass AB 736, which provides $ 10 billion in general obligation bond funds to support the construction, rehabilitation, and preservation of affordable housing and permanent supportive housing. This bill could be monumental in funding the development of affordable housing for several income brackets with building lifespans of over 55 years. Additionally, the current state budget, AB / SB 131, supports the accelerated development of affordable housing through streamlining projects from the California Environmental Quality Act( CEQA challenges) and funding programs to reduce homelessness. However, construction firms should continuously be monitoring funding for programs nationwide. In the US, federal programs like Community Development Block Grant and the HOME Investments Partnership Program could end as the administration will eradicate funding – which can significantly stall developments.
In 2025, R. D. Olson completed 64 affordable units and we currently have 476 +
▼ Vintage Farms will bring more diverse living options to a growing Southern California community – credit MBK Rental Living + Apex Visualization
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