A shortage of new homes and surging prices are putting homeownership out of reach for many Americans. Citi Impact Fund is putting money on tech innovation to help address the challenge. The $500 million fund has committed $25 million to invest in “catalytic, innovative” tech solutions to expand housing access and affordability.
“We’re leveraging our expertise as investors in solutions for access and affordability across the US to really lean in and focus on the housing affordability crisis,” Citi Impact Fund’s Meredith Shields told ImpactAlpha. “We see an opportunity in this technological revolution that we’re in to drive improved affordability and access for communities across the country.”
Housing bottlenecks
Since its 2020 launch, Citi Impact Fund has backed tech companies expanding housing access for economically vulnerable US communities, including ICON, an Austin-based startup that 3D prints homes, and Jetty, a financial services company that partners with property managers to simplify applying for affordable housing.
Shields says the fund will also target some of the affordable housing industry’s most notorious choke points, including the slow, paperwork-heavy permitting process that delays new construction (see also, “New narrative for California’s housing shortage: Build more, build cheaper”).
“There are a lot of interesting technology solutions [that can] advance and streamline permits so that things can be built faster,” she said. Citi is also looking at fintech solutions that reduce barriers to homeownership for first-time homebuyers.
Increasing supply
The funding is part of Citigroup’s Blueprint for Housing Opportunity initiative, a $60 billion commitment to increase the US affordable housing supply by financing the creation and preservation of 250,000 units over five years.
The financing will support a variety of housing types, including homes for essential workers, developments with supportive services and lower-cost rental housing in expensive markets.
Citi Foundation will deploy $50 million in philanthropic grants alongside that capital to support the financial health of residents.
