JPMorgan Chase has pledged to invest $750 billion toward housing through 2035 as part of a broader initiative aimed at expanding homeownership in the United States.
The bank said on Monday that it plans to help 500,000 customers purchase homes, including 200,000 first-time buyers, by increasing its mortgage lending by more than 40 percent.
To support that expansion, JPMorgan said it will hire 850 additional home-lending advisers and develop new financing products for modular and manufactured homes.
The bank also said it intends to help finance 1 million affordable housing units nationwide. Its strategy will include working with state and local governments to streamline zoning and building codes, expand housing tax credits, and encourage public-private partnerships.
JPMorgan has also specifically set aside funding for housing projects in San Francisco. The bank said it is providing nearly $200 million in financing for a 342-unit residential development along the city’s waterfront.
“An affordable and resilient housing market is essential to driving economic growth and increasing opportunity,” Michelle Herrick, JPMorgan’s head of commercial real estate, said in a statement.
The $750 billion pledge represents a 40 percent increase in the amount of capital JPMorgan deployed toward housing over the previous decade, according to the bank.
The housing commitment is part of the bank’s broader American Dream Initiative, which also seeks to support small businesses, expand access to healthcare, and address other economic priorities.
Announced in March, the initiative is backed by JPMorgan CEO Jamie Dimon, who has expressed concern that traditional markers of financial security, including homeownership, are becoming increasingly unattainable for many Americans.
“The American Dream is alive, but it’s slipping out of reach for too many people—and for future generations,” Dimon said in March. “This slows economic growth, hurts communities, and prevents many people from getting ahead.”
The initiative comes as elevated home prices and mortgage rates continue to edge on housing affordability.
The median price of a previously occupied home reached a record $440,660 in June, according to the National Association of Realtors. This marks the 36th consecutive month of year-over-year price increases.
Meanwhile, the average rate on a 30-year fixed mortgage rose to 6.66 percent for the week ending July 30, according to Freddie Mac, its highest level in a year.
The average rate on a 15-year fixed mortgage, commonly used by homeowners refinancing their loans, increased to 6.04 percent for the same week. The rate stood at 5.85 percent a year earlier.