Community Housing Services NAICS 624221, 624229
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Industry Summary
The 7,300 community housing providers in the US offer emergency and transitional housing. Firms may also subsidize housing using existing homes, apartments, hotels, or motels. The industry includes organizations that provide low-cost housing in partnership with the homeowner who assists in construction or repair of a home (Habitat for Humanity) and that repair homes for the elderly or disabled homeowners.
Dependence on Government Funding
The community housing industry is dependent on government funding, which accounts for about 60% of social assistance (over 40% of total revenue).
Shift to Permanent Housing
Government policy that prioritizes ending homelessness quickly has created more permanent housing solutions for the homeless.
Recent Developments
Mar 12, 2025 - Federal Affordable Housing Development Funding Frozen
- The Trump administration has frozen at least $60 million in funding intended largely for affordable housing developments nationwide, according to The Associated Press (AP). The decision puts hundreds of projects into a precarious limbo, according to information and documents obtained by The AP. The approximately $60 million is intended to go to small community development nonprofits in small grants. The money is often used as seed funding for affordable housing projects, turning a concept into a viable development and consequently drawing in more public and private investment, according to Time Inc. The move is one of several funding freezes, staffing cuts, and contract cancellations by the Trump administration at the US Department of Housing and Urban Development.
- The US Department of Housing and Urban Development (HUD) published a Final Rule to modernize and strengthen regulations for the HOME Investment Partnership Program (HOME). HOME is the largest federal grant program specifically for creating housing for disadvantaged households. Key changes include reducing the burden on grantees and beneficiaries by streamlining income determinations; simplifying HOME rental housing requirements, making it easier to use HOME for small rental housing projects; better aligning HOME with other federal funding; simplifying tenant based rental assistance (TBRA) and making HOME TBRA work better for tenants, landlords, and participating jurisdictions; and strengthening tenants' rights and protections for occupants of HOME-assisted rental units and recipients of HOME tenant-based rental assistance.
- Finalized updates to the Office of Management and Budget’s Guidance for Federal Financial Assistance, which sets the foundational requirements for agencies in making grants and providing other forms of federal financial assistance were published in late 2024. The community housing industry is dependent on grants and donations to fund operations, although dependence varies by type of operation. The updates to what is known as the Uniform Grants Guidance will streamline and clarify requirements for federal funding so recipients can invest in mission outcomes rather than in administrative overhead, according to the Administration. The updated Uniform Grants Guidance also instructs agencies to make grant announcements as clear and concise as possible to make it easier for eligible recipients to access critical funding. The Federal government provides more than $1.2 trillion in funding per year for thousands of programs through grants and other forms of financial assistance.
- Community housing service industry employment and wages for nonsupervisory employees increased slightly during the first month of 2025, according to the US Bureau of Labor Statistics. Community housing services industry sales are forecast to grow at a 5.2% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy.
Industry Revenue
Community Housing Services
Industry Structure
Industry size & Structure
The average community housing provider employs between 16 and 23 workers and generates around 2.7 million annually.
- The community housing industry consists of about 7,300 organizations that employ about 172,000 workers and generate almost $20 billion annually.
- The industry is highly fragmented; the top 50 companies account for between 25.8% and 29.2% of industry revenue.
- Most organizations are small and independent and operate at a local level. National organizations like Habitat for Humanity are the exception. Almost all organizations (over 95%) are tax-exempt.
- The community housing industry is part of a complex network of emergency shelters, transitional housing, permanent supportive housing, and public housing.
- Temporary shelters account for 48% of establishments and 44% of revenue. Other types of community housing account for 52% of establishments and 56% of revenue.
- US cities with the largest homeless populations include Los Angeles; New York; Seattle; San Jose, CA; and Oakland, CA.
Industry Forecast
Industry Forecast
Community Housing Services Industry Growth
Source: Vertical IQ and Inforum
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