The Housing Market Needs More Supply and Affordability. Life Insurers Invest in Both.
Apr 24, 2026
The Housing Market Needs More Supply and Affordability. Life Insurers Invest in Both.
Apr 24, 2026
It’s no secret that the current housing market is a challenge for many Americans – from record high median home prices, the lowest level of homebuying since 1995, and a soaring renter population. The median age of a first-time homebuyer is now a record-high 40, climbing from 33 in 2020 and 29 in 1985.
As Congress looks to address the challenges of supply and affordability and considers legislation like the 21st Century ROAD to Housing Act – America’s life insurers are already investing hundreds of billions of dollars to address the problem.
Life insurers hold $262 billion in multifamily mortgages. In fact, life insurers are the fourth-largest investor in the sector, holding 11% of all multifamily mortgages in the United States.
This long-term capital fuels construction projects of new multifamily properties at a time when supply is a major strain on the market. In 2024, 608,000 new multifamily units were completed, the most in nearly 40 years and more than double the average annual completions since 1990. These projects boost employment while providing much needed housing stock in cities across the country for people of all incomes.
These holdings represent a significant portion of life insurers’ $662.9 billion investments in residential mortgages and mortgage-backed securities. Life insurers’ holdings also include $15.6 billion in municipal housing bonds and investments that qualify for Low-Income Housing Tax Credits, boosting affordable housing.
Life insurers’ residential mortgage investments have increased steadily since 2011, rising at an average annual rate of 14.3%, increasing 12 times faster than the total residential mortgage market. This is nothing new. Life insurers have invested in the mortgage market for 150 years and played a key role in expanding America’s housing supply, increasing their investment in the sector to fund periods of transition, including the beginning of the 20th century, the 1920s, and post-WWII.
These investments align with life insurers’ mission of keeping decades-long promises to their policyholders. Mortgages and mortgage-backed securities are long-duration assets that align well with life insurers’ long-term liabilities, including life insurance policies and annuities that often require payments decades into the future.
Thanks to life insurers, families from all walks of life can have a place they call home.
David Chavern
David Chavern is President and CEO of the American Council of Life Insurers (ACLI) whose mission is to provide financial certainty to Americans regardless of where and how they work, their life stage, or the economic status of their household. ACLI’s 275 member companies represent 94 percent of industry assets and provide financial security products and services to 90 million families.
