Dive Brief: Airbnb announced Monday it is pledging $250 million in last-dollar financing for multifamily housing projects, beginning with a $6.4 million investment in an affordable housing development in Austin, Texas.
Dive Insight: As cities seek ways to address the affordable housing crisis, many are exploring public-private partnerships to spur development.
Austin Mayor Kirk Watson lauded Airbnb’s investment in the city, where the company has around 14,400 active short-term rental listings, according to AirDNA.
The company’s $6.4 million investment will go toward 201 affordable housing units, known as the St. John redevelopment project, which will tie in with a companion project expected to generate 325 units of mixed-income housing.
The company said it will invest in multifamily projects with expected investor rates of return of at least 50% below standard.