Amazon, one of America’s “Big Five” tech giants, recently disclosed plans to allocate an extra $1.4 billion towards the development of 14,000 affordable homes near three U.S. cities.
Launched in January 2021, the Amazon Housing Equity Fund aims to create and safeguard 20,000 residences that are accessible to individuals and families with moderate to low incomes.
With just two more years to go to reach its target, Amazon has already provided $2.2 billion in low-interest loans and grants for the construction and preservation of 21,000 homes in its communities over the past three years.
This decision comes amidst escalating U.S. home prices, with the median home sale price in the nation currently at $432,812, marking a 6 percent increase from the previous year, according to Redfin’s recent data.
Amazon plans to upscale its funding to $3.6 billion to develop and maintain an additional 14,000 homes around the specified regions, with a grand total goal of constructing and upkeeping over 35,000 affordable homes across the Puget Sound region, Arlington, and Nashville.
“We hope that our additional commitment—coupled with other public and private resources—will help make a meaningful difference for thousands more people and enable these regions to thrive,” Amazon states.
The program targets households earning between 30 and 80 percent of the median area income, which includes first responders, teachers, nurses, and healthcare professionals.
Over the last three years, Arlington has seen a 23 percent surge in affordable housing inventory. The program has subsidized more than 8,600 affordable homes in the Puget Sound Region and Bellevue, while Nashville’s initiative has supported over 3,100 low-cost homes in the area.
Similar to the initial funding, the additional $1.4 billion investment will comprise a blend of loans and grants.