Airbnb pledges $250 MILLION to jump-start affordable housing projects with 'Housing Accelerator' program

Airbnb has launched a $250 million "Housing Accelerator" program in an effort to finance more multifamily housing units, with the first investments going towards Austin, Texas. The effort is aimed at providing a higher supply of housing that may decrease housing costs for some. 

The company announced the program on Monday in a press release, saying that Airbnb will "make an initial investment of $250 million in rental housing developments that are ready to build but stuck on the one-yard line, thereby unlocking $5 billion in capital investments over the next ten years."

The first chunk of $6.4 million is going towards a roughly 200-unit project in Austin, Texas designed for affordable prices. The move will allow developers with financing shortfalls for building but have cleared other hurdles for projects to pay for the builds. The program also places priority on affordable and mixed-income development opportunities. Although they have said they will be focusing on the US, they have not ruled out going to other markets with the program.  

"The ability to afford housing is part of the foundation of Airbnb. The company was launched because we couldn’t afford our rent—and today, that reality exists for millions of Americans. The housing crisis wasn’t created overnight, and it won’t be solved overnight. But we can start moving in the right direction, and that is exactly what the Airbnb Housing Accelerator is designed to do," Airbnb CEO Brian Chesky said. 

Austin Mayor Kirk Watson said in response to the project, "Austin leads the national conversation and the actual outcomes on housing because we're doing what it takes to build. I'm glad to see Airbnb investing in housing projects like St. John's. Expanding housing takes all of us. When a company like Airbnb steps up and works alongside local organizations, community leaders, and the city, you get real outcomes."

The initiative from Airbnb also includes a $5 million prize for companies that can develop technology that will make it faster, cheaper, and easier to build a home.