Amazon says its housing fund has deployed $2.7 billion since 2021 to create or preserve over 27,000 affordable homes, with residents saving an average of $4,900 a year in rent
Announcing the fund, the e-commerce giant said that it has deployed more than $2.7 billion to help create or preserve more than 27,000 affordable homes across the Puget Sound, National Capital and Nashville regions, enough housing for an estimated 60,000 residents. The fund was initially announced in 2021 with an initial $2 billion commitment. Since then, the Amazon Housing Fund has grown to a $3.6 billion pledge to help create or preserve more than 35,000 affordable homes in the three regions, with nearly all of those homes carrying 99-year affordability covenants. To date, the fund’s $2.7 billion in deployed capital has supported roughly 12,000 homes in the Puget Sound region, 11,400 in the National Capital region, and 3,700 in the Nashville region.
Amazon recently released the Amazon Housing Fund Five-Year Impact Report, marking the fund’s fifth anniversary.
One of the central findings of the report is the speed at which Amazon-backed developments reach completion: Amazon-funded projects delivered homes an average of 14.5 months, or 37% faster than comparable public financing alone. Amazon says that 80% of the fund’s projects are built in partnership with local, state or federal government agencies, reflecting Amazon’s approach of pairing private capital with public programs to accelerate development timelines. Almost all Amazon-backed homes serve households earning 80% or less of the area median income (AMI), with 65% serving households earning less than 60% of AMI. Fernando Ferreira, chair of real estate at the University of Pennsylvania’s Wharton School said “The Amazon Housing Fund is the largest non-traditional private-sector attempt to help address affordability at this at speed and scale, financing both new developments and acquisitions/preservations under a 99-year covenant. Its size is impressive, supporting more than 27,000 affordable homes across these regions.
David Zapolsky, Chief Global Affairs and Legal Officer at Amazon said “Five years ago, Amazon committed to work alongside public agencies, developers, and community organizations to help address this problem. Housing is a real challenge for our communities, especially in and around expensive metro areas, and we feel strongly that we can make an impact by helping create and preserve thousands of affordable homes. It avoids the inefficiencies and bureaucracies that slow new projects, a breath of fresh air in a sector that badly needs new ideas.”