Affordable, disability-forward, inclusive housing is more than a socially impactful initiative; it is a strong investment opportunity. For the traditional real estate developer, this sector offers an unusually rich combination of financial returns, risk mitigation, and market differentiation. The Inclusive Design Standards (IDS), created by The Kelsey in partnership with Mikiten Architecture and the Inclusive Design Council, are a great example of thoughtful design strategies that have the potential to reduce cost and maximize returns while creating housing that serves all.

By their very nature, affordable housing types have been generally proven to be one of the most resilient asset classes in periods of economic slowdown, given the high level of demand and stability. In fact, over the last two decades, affordable housing has generated strong returns, with a spread averaging 384 basis points above 10-year Treasuries. Its resilience during economic downturns is rooted in the basic need for housing. Such developments enjoy high, if not full, occupancy rates and steady cash flows driven by persistent shortages in affordable housing.The stability of disability-forward housing in particular is grounded in the fact that it fills a large and poorly serviced market niche. Considering that over 26% of Americans live with disabilities and less than 6% of available housing stock meets access needs, the demand for inclusive housing far outstrips supply. Properties that are designed with accessibility considerations at the outset show a lower rate of turnover because residents are more likely to remain in homes that address their particular needs. This pattern further improves the financial stability and value of the property by stabilizing cash flows and offering a tangibly positive social impact for investors.

Quite contrary to conventional thinking, designing with disability in mind does not have to be more costly; rather, it can be a cost-saving strategy if done correctly. With tools like The Inclusive Design Standards (IDS), owners can integrate accessibility sooner to ensure the overall cost will actually be lower, and that better, inclusive housing is created. 

For instance, at The Kelsey Ayer Station in San Jose, California, the total development cost per unit was 2% below the city average, with leading-edge accessibility incorporated throughout the development. Similarly, while still in construction, The Kelsey Civic Center in San Francisco, California is on track to be below average for similar projects as well. These comparable costs of development debunk the persistent myth that designing for accessibility is cost-prohibitive. In reality, incorporating inclusive design elements from the outset not only ensures compliance with accessibility standards but also streamlines construction processes, reduces the need for expensive retrofits, and enhances long-term operational efficiency. By planning for accessibility early, developers can achieve high-quality, inclusive communities without inflating budgets—proving that disability-forward design is not just an ethical choice, but also a financially sound one.

Such features as wider doorways, roll-in showers, and adaptable kitchen layouts – incorporating inclusion into the design process – allow developers to save on costly retrofits and align construction while improving marketability over time.

A number of federal and state programs, set up to encourage investment in affordable, inclusive housing, come together to give investors manifold returns. The Low-Income Housing Tax Credit (LIHTC) Program has the most considerable equity contribution, along with reduced tax liabilities extending up to a decade. Furthermore, Section 8 Housing Choice Vouchers ensure rental revenues by way of subsidies from the federal government, and owners are guaranteed cash flows. Complementary to these programs are the Section 811 and Section 202 grants for supportive housing aimed at people with disabilities or elderly populations. These programs not only make projects possible but create a number of attractive, strong investment opportunities in disability-forward housing.

The market for those in need of inclusive housing is large and grossly underserved; hence, it presents a critical opportunity for investment. Systemic barriers often present serious obstacles to the independence and quality of life for persons with disabilities. Besides serving high-need areas, accessible homes are increasingly sought after by older households and multi-generational families: the functionality and adaptability that come with inclusive design make them grow in demand. This reveals a growing need, underlining the fact that inclusive housing can answer not only unmet needs but also a growing market category.

Inclusive design opens up a lucrative, growing pool of tenants to developers, differentiating their properties from the competition.

Central to the success of disability inclusive projects across the country are the Inclusive Design Standards (IDS) – an open-source resource that sets a new standard in accessible, disability-forward housing well beyond basic compliance, providing solutions that are innovative and an excellent option for the range of residents’  diverse access needs. These standards focus on six key Impact Areas, which address critical access needs across a diverse population. As an example, adjustments in mobility and height will maximize accessibility for people with physical disabilities, ensuring appropriate reach ranges, maneuvering spaces, and assistive tools for daily living. Consideration of sensory features serves those who are hearing or vision impaired, incorporating design elements such as acoustical considerations, communication support systems, and high-contrast materials to enhance visual accessibility. Health and wellness considerations include low-VOC material specifications that enhance the indoor environment and support individuals with chronic health conditions or chemical sensitivities. Buildings are also made cognitively accessible through a wayfinding system and intuitive building layout patterns, addressing the needs of individuals who process information differently and benefit from clear, intuitive navigation. Furthermore, IDS incorporate support needs, ensuring that environments facilitate in-home and community-based support services for direct support professionals, health aides, and family caregivers. By embedding these Impact Areas into every aspect of design and operations, The Kelsey fosters not only accessible and functional built environments, but also truly inclusive communities that promote independence, comfort, and long-term sustainability.

The IDS provide a roadmap with over 300 actionable elements, through which the developer can enhance livability, affordability, and sustainability in a project. The IDS ensure that such projects are not only inclusive but easy to manage in the long term.

As investors continue to seek out ways to meet environmental, social, and governance (ESG) priorities, disability-forward housing aligns with each of these.

Environmentally, features such as energy-efficient systems and sustainable materials ensure that the developments meet the standards in green building and reduce the carbon footprint. Socially, it furthers equity and integration by intentionally including a vulnerable population in these communities, allowing for wider social cohesion and accessibility. From a governance point of view, projects adhering to the IDS have demonstrated leadership in innovative, impactful development and set a high benchmark for responsible investment in the housing sector.

Investing in affordable, disability-forward, inclusive housing will not only secure great financial returns, but will also respond to one of the most significant needs in our society. The Inclusive Design Standards is a guidebook to build housing that is inclusive, efficient, and effective.

Learn more about our free, open-source IDS Resources and explore ways you can partner with us. Together, we can build communities where everyone belongs.

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