Airbnb announces first housing accelerator investment in Austin, TX

Key Takeaways

• Airbnb is committing an initial $250M in last-dollar financing to unlock more than $5B in capital over the next 10 years to build more housing, with an inaugural investment in affordable housing in Austin, Texas.
  
  
• Airbnb will support pro-housing policy reforms—including zoning, permitting, and building code changes—in partnership with local organizations like AURA in Austin.
  
  

Airbnb was born when two hosts inflated three airbeds and launched a website to help pay their rent. Nearly 20 years later, millions of hosts rely on Airbnb income to stay in their homes—but too many of their neighbors still struggle to find a home they can afford.

Today, Airbnb is taking its most significant step yet to be part of the solution: the launch of the Airbnb Housing Accelerator, a multi-pillar commitment to help build more housing across the country and around the world.

The Housing Accelerator combines capital deployment, policy advocacy, and innovation into a coordinated system designed to help remove the barriers that prevent homes from being built and unlock housing supply, and inspire the next generation of breakthroughs in construction technology.

Airbnb’s inaugural $6.4 million investment will support the development of 201 affordable housing units in Austin, Texas. Located at 800 E. St. John Avenue, St. John is split into two parts. Airbnb’s investment funds the construction of 201 units of affordable housing. Under an agreement with the City of Austin, this fully affordable project was necessary in order to build a companion project with 325 units of mixed-income housing which is expected to open at the same time. Combined, St. John will include more than 500 units of housing, plus retail, a park, and public art.

The site, owned by the city since 2013, has sat empty for nearly 20 years. In 2017, then-Councilmember (now US Congressman) Greg Casar passed a resolution directing city staff to work with surrounding neighborhoods on a new vision for the property. The city then partnered with Greystar to bring the community’s plans for affordable housing to fruition. Despite overwhelming community support and tax incentives from a State of Texas affordable housing program, construction stalled for five years due to a lack of funding. Airbnb’s investment bridges that gap and enables construction to finally begin.

Investment alone cannot solve the housing crisis. Durable change requires modernizing the rules that make it too expensive, too slow, and too difficult to build. Airbnb is proud to support local organizations like AURA in Austin fighting to enact pro-housing reforms.

AURA has helped mobilize Austin residents to engage City Hall in support of legislation that allows the construction of up to three homes per lot and smaller minimum lot sizes, which makes it easier to build starter-homes. Going forward, they want to legalize “missing middle” housing in Austin. Airbnb’s support will enable them to hire their first-ever paid staffer to move beyond an all-volunteer operation.

Alongside support for AURA, Airbnb is also making donations to trusted nonprofit organizations that serve the St. John neighborhood, focused on economic empowerment and homeownership.

More information on the policy solutions Airbnb is backing is available in The Airbnb Housing Accelerator: Tackling the Housing Crisis, a new report issued today highlighting reforms that make housing more available and affordable.

“Austin leads the national conversation and the actual outcomes on housing because we’re doing what it takes to build. I’m glad to see Airbnb investing in housing projects like St. John’s. Expanding housing takes all of us. When a company like Airbnb steps up and works alongside local organizations, community leaders, and the city, you get real outcomes.”

— Kirk Watson, Mayor, City of Austin

“Austin’s housing shortage demands a collaborative approach. The St. John’s project shows what’s possible when the public sector, private sector, and community partners come together to build more housing and ensure affordability. I’m proud that Austin is the first city where Airbnb is making this kind of local investment.”

— José “Chito” Vela, Mayor Pro Tem and Councilmember for District 4, City of Austin

“AURA is grateful to Airbnb for their partnership and commitment to strengthening communities here in Austin. For more than a decade, we have advanced reforms to address the root cause of Austin’s housing crisis: the simple fact that we have made it too difficult to build enough homes for everyone. Airbnb has been a real partner in working with communities to address that issue head on, and we welcome their generous support for the work we do to advance pro-housing policies.”

— Zach Faddis, President, AURA

For more information on the Airbnb Housing Accelerator visit airbnb.com/housingaccelerator.

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