AUSTIN, Texas — Airbnb is investing $6.4 million to help move forward a long-stalled affordable housing development in Northeast Austin as part of the company’s new Housing Accelerator initiative.
The funding will support construction of 201 affordable apartments at 800 E. St. John Ave. Airbnb says the fully affordable portion of the project is required under its agreement with the City of Austin in order to build a companion 325-unit mixed-income development. Together, the redevelopment is expected to bring more than 500 homes, retail space, a park, and public art to the site.
Crews are now clearing the longtime vacant property, which the city has owned since 2013. City leaders finalized a redevelopment partnership earlier this year with the Housing Authority of the City of Austin and Greystar. The city says the broader project is expected to include 526 rental apartments, commercial space and an expanded St. John Park, with final delivery anticipated in 2028.
Airbnb CEO Brian Chesky announced the investment Monday at Austin Central Library, making Austin the first city selected for the company’s Housing Accelerator.
“This is a project that’s been stalled for 20 years in the making,” Chesky told CBS Austin. “It’s been on the one-yard line, so we’re just a very, very small part of the solution.”
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The company says its new initiative will commit an initial $250 million in “last-dollar” financing, with the goal of unlocking more than $5 billion in capital for housing construction over the next decade. Airbnb also says it will support policy efforts involving zoning, permitting and building-code changes, including through Austin’s pro-housing advocacy group AURA.
The announcement comes as Airbnb and other short-term rental platforms have faced criticism over their potential effect on long-term housing availability.
When CBS Austin asked whether the initiative represented a shift, Chesky said Airbnb has “in the past been part of the problem.”
“People have taken homes off the market to put on Airbnb,” Chesky said. “So, we’ve worked with cities to prevent that. We’ve complied with local laws and regulations.”
Chesky said Airbnb listings account for about one-half of 1% of Austin homes and said many local hosts use the income to help pay rent or their mortgage.
Austin Mayor Kirk Watson called the investment an example of the collaboration needed to expand housing in Austin.
“Expanding housing takes all of us,” Watson said in Airbnb’s announcement. “When a company like Airbnb steps up and works alongside local organizations, community leaders, and the city, you get real outcomes.”
“Austin’s housing shortage demands a collaborative approach,” said José “Chito” Vela, Mayor Pro Tem and Councilmember for District 4. “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.”
