JPMorganChase plans to deploy more than $750 billion through 2035 to increase affordable housing and homeownership opportunities.
This would be a nearly 40% jump in the company’s housing capital investment compared to the prior decade.
“An affordable and resilient housing market is essential to driving economic growth and increasing opportunity,” said Michelle Herrick, head of commercial real estate for J.P. Morgan. “We’re focused on helping more people access quality housing they can afford—and we’re working across the real estate community, local governments, and nonprofits to scale housing solutions throughout the U.S.”
The company said it plans to expand tools such as its debt, equity, and grant programs to build or preserve housing in partnership with developers, owners, nonprofits, and governments. It is targeting 1 million affordable units that would serve residents earning no more than 120% of the area median income.
As an example, the financial services firm recently provided financing for developer Fifth Space’s Sophie Maxwell building that recently brought 105 affordable apartments to the Power Station development San Francisco. The firm announced that it will provide nearly $200 million more in financing for a 342-unit residential building to continue the momentum in redeveloping a former power plant into a new community.
On the homeownership side, the company plans to help 500,000 people, including 200,000 first-time buyers, purchase homes by increasing mortgage lending by more than 40%.
A third leg of the firm’s plans call for it to advance local solutions that make it easier and less expensive to build housing. This includes policies that allow more housing to be built in residential areas, unlocking underutilized sites, modernizing building codes, and streamlining permitting.
It is taking a leadership role in the U.S. Chamber of Commerce’s newly formed Housing Advisory Council, which will serve as a business-led forum to shape housing policy.
The company added that it will also expand its efforts to help “pilot, de-risk, and scale solutions that help to increase housing supply, including through $6 million in new grants to the San Francisco Housing Accelerator Fund, Community Vision Capital & Consulting, San Francisco Bay Area Planning and Urban Research Association, The Housing Action Coalition, and Housing California.
The announcement is part of the firm’s American Dream Initiative, a multi-year effort to expand opportunity to millions of Americans through targeted investments in local communities.