Delays in funding approvals, rising vacancy rates and a lack of clarity about demand for specialist disability accommodation (SDA) are among the challenges facing providers and investors in the sector.

The specialist disability accommodation asset class is projected to be valued at around $12 billion by 2027.

Seventy-eight percent of SDA providers said the time taken by the National Disability Insurance Agency to make SDA decisions was extremely challenging while 48 per cent said it took at least six months to fill a single vacancy.