JPMorgan Chase to Invest $750B to Increase U.S. Housing Supply and Homeownership
In an effort to boost the U.S. housing supply, banking giant JPMorgan Chase said it will invest $750 billion toward that goal through 2035.
The investment includes financing for 1 million affordable housing units and assisting 500,000 people in buying homes, the bank said.
“An affordable and resilient housing market is essential to driving economic growth and increasing opportunity,” Michelle Herrick, head of commercial real estate for JPMorgan, said in a statement.
The investment is part of JPMorgan Chase’s American Dream Initiative, announced in March to boost economic mobility at a time when many Americans say traditional financial milestones are slipping further out of reach. It represents a 40% increase in the bank’s housing capital deployment compared to the previous 10 years, the bank said.
Homes Beyond the Reach of Many
The effort is rolling out as housing costs continue to march higher, pricing homes beyond the reach of many Americans. The median price of existing homes in June reached a record $440,660, marking 36 straight months of higher property prices.
A majority of Americans surveyed by CBS News earlier this year said it’s harder to reach goals such as buying a home or raising a family than it was for past generations. CBS said that homeownership is considered a key pathway to building wealth, but fewer than four in 10 non-homeowner households can afford a typical starter home, according to LendingTree.
In its statement, JPMorgan said the company’s efforts to expand the nation’s housing supply will focus on collaborating with states and local communities to streamline zoning and building codes, as well as to expand tax credits and private-public partnerships.
The company said it plans to assist 500,000 customers, including 200,000 first-time homebuyers, in buying homes by increasing its mortgage lending by more than 40%. The bank said it plans to do that partly by adding 850 new home-lending advisers and by developing new loan products for modular and manufactured homes.
The post JPMorgan Chase to Invest $750B to Increase U.S. Housing Supply and Homeownership first appeared on The MortgagePoint.
