Amazon Has Promised to Pay $1.4 Billion to Build 14,000 Affordable Homes in Washington, Seattle, and Nashville

Amazon has promised to build 14,000 inexpensive homes in the Seattle, Nashville, and Washington, D.C. metro areas with $1.4 billion from its Housing Equity Fund. With this new investment, Amazon has now promised to build 3.6 billion dollars worth of homes.

Andy Jassy, CEO of Amazon, said, “We hope that our extra commitment, along with other public and private resources, will help make a real difference for thousands more people and help these regions thrive.”

In 2021, Amazon gave $2 billion in low-interest loans and grants to help make more housing affordable in West Coast towns with high housing costs. The company has given more than its original goal, giving $2.2 billion to build and maintain more than 21,000 inexpensive homes in just two years.

Amazon’s plan is to build homes for families whose income is 30% to 80% of the area’s median income. The company often works with nonprofits to buy existing apartment complexes and set them aside for low-income families. This is usually a more cost-effective option than building something from scratch. Jenny Schuetz, a senior fellow at the Brookings Institution, pointed out that in expensive markets, building a single cheap unit can cost up to $1 million. This means that even big promises are quickly used up.

The company says that 92% of the homes it has helped build are close to bus or train stops, which saves residents money on transportation. Also, 41% of the homes have two or more beds to make them better for families.

Source: davidsonian