Airbnb launched a $250 million Housing Accelerator initiative to finance new construction across the United States. The program responds to criticism that short-term rentals reduce housing affordability.
The fund provides below-market, last-dollar financing to developers for affordable and mixed-income projects. Airbnb expects this initial investment to unlock over $5 billion in development capital over the next decade. The company will recycle repayments into new projects.
The first commitment provides a $6.4 million investment for a project in Austin, Texas. This initial development will create 201 affordable housing units. The initiative also supports pro-housing policy reforms. Airbnb established a $5 million prize for innovations that make homebuilding faster and cheaper.