AI helps affordable housing operators improve efficiency, compliance

Artificial intelligence (AI) and smart building technology are becoming more viable for affordable housing operators, particularly as tools become more targeted, scalable and easier to deploy. For owners managing rent-capped communities, aging assets and complex compliance requirements, the investment case increasingly depends on whether technology can reduce operational burden while improving resident outcomes. In an exclusive interview with IREI, Joshua Bagley, senior director of development operations at Fairstead, discusses how technology can improve compliance, streamline maintenance and property operations, support on-site teams, and strengthen long-term affordability for residents.

Fairstead owns and manages more than 30,000 affordable apartment homes across 28 states, with an operating platform that includes acquisitions, development, construction, general contracting and property management.

Affordable housing has historically lagged in tech adoption due to cost constraints. What has changed to make AI and smart building investment viable today?

Technology adoption across affordable housing has historically lagged behind market-rate communities because of several factors, including sector fragmentation, regulatory complexity and limited margin for experimentation. But that is beginning to change. The biggest shift is the technology itself. AI and automation tools have become more accessible, targeted and practical to deploy. With the right team in place, many solutions can now be designed to address specific operational challenges, such as compliance, maintenance workflows, resident communications and utility management.

That makes the investment case more viable for affordable housing operators. At Fairstead, we have been able to leverage our subject matter expertise and scale as an early adopter. Our portfolio allows us to invest in, test and deploy these tools across communities nationwide, improving operations in a way that was not previously feasible for much of the industry.

How do you evaluate whether an AI or smart building investment is worth the cost in a rent-capped environment? What does success look like from a risk-adjusted return perspective?

We evaluate new technology through three main lenses: scalability, compliance and resident impact.

First, we look at whether a solution can scale. When testing new platforms, we assess ease of implementation not only at the property level, but also across multiple communities within our 30,000-unit portfolio. The goal is to determine whether the platform can be deployed broadly and customized to fit our needs, making it worth our time and capital to build out.

Second, regulatory compliance is central to the evaluation process. Affordable housing is a highly regulated asset class, and technology must help us navigate that environment more accurately and efficiently. We prioritize tools that can reduce mistakes in areas such as recertifications, reporting and regulatory requirements.

Finally, we consider the impact on residents. We actively seek tools that improve resident communications and the overall resident experience. Faster unit turns, better maintenance workflows and quicker response times can translate to higher resident satisfaction and stronger retention over time.

From a risk-adjusted return perspective, success means technology that is easily deployed and adopted by on-site teams, reduces operational burden and delivers better outcomes for residents.

What solutions has Fairstead adopted to support property management, operations and project rehabs/construction?

Fairstead has a team focused on building out proprietary AI-powered tools that support rent collection, accounts payable, utility management, financial reporting, tenant communications and operational analytics, as well as proprietary security monitoring across our communities.

To create consistency across our communities, we have taken a portfolio-wide, centralized approach to property management, supported by investments in proprietary AI-enabled solutions, strategic partnerships with outside vendors, or a combination of the two.

One key area is repair and maintenance. We have deployed centralized repair and maintenance systems that provide real-time visibility into performance, compliance and maintenance needs throughout our 30,000-unit portfolio. We have also built proprietary internal dashboards for functions such as inbound resident inquiry tracking. These tools help us better understand resident needs, measure response times and allocate resources more effectively, allowing on-site teams, such as our highly qualified Community Managers, to focus on work that requires a human element.

We have also implemented AI across our compliance workflows. AI-powered communication tools, including automated updates and proactive recertification outreach, help reduce friction and errors, which is critical in such a highly regulated asset class.

In addition, Fairstead uses technology to support security monitoring across its communities. Together, these tools help reduce administrative
burden and allow on-site teams to spend more time engaging directly with residents.

How do you balance the need for innovation with the realities of aging housing stock and limited capital for redevelopment?

It comes down to scalability and discipline. Affordable housing is complex, and many owners are focused on day-to-day operations, which leaves little time for testing new approaches. At Fairstead, we have made a deliberate effort to invest in systems that can make our teams' jobs easier and create better outcomes for residents.

That means prioritizing solutions that can be implemented across our more than 180 communities, so a single investment can benefit thousands of units, not just one property.

But successful AI integration requires the right foundation. AI tools are only as effective as the data behind them, and many operators using legacy systems do not have clean, structured data. We have invested in centralized property management systems so that when we deploy AI tools, they have reliable information to work with and can deliver immediate impact.

In an environment defined by aging assets and capital constraints, that immediate impact is important. Rather than relying only on redevelopment cycles, technology can support portfolio-wide improvements in operations, maintenance, compliance and resident engagement.

Looking ahead, what role do you see AI and smart building technology playing in improving long-term affordability, not just operational performance?

Affordable housing is one of the most heavily regulated sectors in real estate, with layered federal, state and local requirements. Historically, that complexity has limited where operators can invest and grow. AI can help by providing earlier visibility into financial and compliance risks, allowing teams to address issues before they escalate.

For Fairstead's large, geographically dispersed portfolio, AI has been particularly helpful in managing complex compliance requirements more accurately and efficiently. Its implementation has reduced administrative burden and improved execution, helping us operate more reliably in markets that may have been harder to navigate in the past.

Over time, that supports long-term affordability. Better data, faster response times, stronger compliance workflows and more efficient resource allocation enable us to maintain our communities more efficiently over a longer period of time. This protects affordable housing for residents at a time when we need it most.

Ultimately, AI and smart building technology are not just about operational performance. They are tools that can help affordable housing operators scale more effectively while keeping teams focused on delivering better outcomes for residents.