Banks Flood Affordable Housing Market with $750 Billion Investment

Big banks are getting into the affordable housing business in a big way. JPMorgan Chase announced it will direct $750 billion to US housing projects through 2035, with plans to finance 1 million affordable housing units and help 500,000 buyers purchase homes over the next decade.

This is part of the bank's 'American Dream Initiative,' which focuses on local-level economic development. JPMorgan Chase already lends a lot of money for multifamily and residential mortgages, but this investment is its largest ever in homebuilding initiatives.

JPMorgan Chase isn't alone in this effort - Bank of America has committed to providing upwards of $42 billion in financing for affordable housing efforts between 2020 and 2025, while Citi has pledged $60 billion to housing affordability efforts between 2026 and the early 2030s.

The banks' investment is part of a growing trend. Many cities are partnering with developers to build multifamily developments from scratch, and government programs encourage this kind of community investment by offering tax breaks.