Airbnb announced a new project this week aimed at developing affordable housing. The $250 million “Housing Accelerator” program has now been poured into Austin, Texas, with future plans to expand to $5 billion in capital.
The first $6.4 million will support the development of 201 affordable housing units in the city as part of a larger redevelopment project that will involve 500 housing units.
“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, said Airbnb CEO and co-founder Brian Chesky. “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.”
Austin Mayor Kirk Watson recognized the investment. “Austin leads the national conversation and the actual outcomes on housing because we’re doing what it takes to build,” he said. “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.”
Some affordable housing efforts have received pushback. Earlier this year, homebuilders filed a lawsuit against the city of San Luis Obispo, California, challenging a policy that requires developers to either pay steep fees or give up housing units to meet the city’s affordable housing requirements. While the developers chose to pay the fee, viewing it as less burdensome, their attorneys argued the requirement amounts to an unconstitutional condition tied to land-use approval.
