Jamie Dimon Committed JPMorgan to $750 Billion of Housing Investment Through 2035
The investment bank sees the massive housing shortage as a major opportunity.
Overview
JPMorgan Chase (NYSE: JPM) just upped its bet on housing. The banking giant said it will spend $750 billion over the next decade -- through 2035 -- to increase the nation's housing supply and support homeownership. That's 40% more than it spent on housing investment over the past decade.
The initiative is part of CEO Jamie Dimon's American Dream Initiative, which targets investments in local communities across the U.S. with investments in housing, small businesses, and healthcare, among other areas. The $750 billion housing investment will go toward building or preserving 1 million affordable housing units and providing financing assistance to 500,000 homebuyers.
Details
The U.S. housing industry is currently facing a severe shortage of up to 4.7 million homes, according to Zillow (other estimates put it lower). And affordability is near an all-time low due to rising home prices and elevated borrowing rates. The median price of a home hit a record $440,600 in June, and the average 30-year mortgage rate, at 6.65%, is more than double what it was five years ago.
Source
Originally published at www.fool.com.