Amazon to Enter US Affordable Housing Market to "Enhance Brand Value"

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Global e-commerce company Amazon announced it will supply affordable housing targeting major U.S. metropolitan areas facing a housing shortage crisis, Bloomberg reported on the 11th (local time).

On the same day, Amazon stated on its blog, "We have invested an additional $1.4 billion in the Housing Equity Fund (HEF) to build and preserve 14,000 affordable homes in Seattle, Washington, Nashville, Tennessee, and other locations," adding, "We aim to support residents from the middle class to low-income groups in accessing quality, affordable housing and living near workplaces and transportation hubs."

The appearance of low-cost housing built by Amazon
Photo by Yonhap News

This is not Amazon's first time supplying affordable housing in the U.S. Previously, in 2021, Amazon invested $2.2 billion to provide 21,000 affordable homes for households earning 30-80% of the area median income in Seattle, Nashville, and Arlington. These areas are home to headquarters of big tech companies such as Amazon, Microsoft (MS), Alphabet, Apple, and Meta Platforms. The influx of high-wage engineers able to bid for real estate at prices higher than those of existing local residents has been criticized for exacerbating the regional housing shortage.

Bloomberg emphasized, "Amazon's HEF originally aimed to create rental housing, but last year shifted focus toward homeownership for residents," adding, "Amazon is enhancing its brand value in its hometown of Seattle through this housing fund." Currently, Amazon is reportedly promoting the housing supply program to local residents via mail flyers and video advertisements.

Andy Jassy, Amazon's Chief Executive Officer (CEO), said, "We created the housing fund to preserve and create homes that will remain affordable for the next century," and added, "We hope our additional efforts, combined with other public and private resources, will make a meaningful difference for thousands more people and contribute to the prosperity of these communities."

Sarah Sadian, Senior Vice President of Policy at the National Low Income Housing Coalition (NLIHC), commented on Amazon's pledge, saying, "This is a tremendous amount of money, and we need all the funding we can get," but also pointed out, "The federal government should not rely on corporate philanthropy to solve the (urban housing shortage) problem."

Meanwhile, Amazon's stock closed slightly higher at $187.23 on the New York Stock Exchange that day, marking an approximately 23% increase since the beginning of the year.

This content was produced with the assistance of AI translation services.