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Philanthropy Could Help Fast-Track Adoption of Manufactured Housing, JPMorgan Says · Best of: Features

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  Philanthropy could help fast track adoption of manufactured housing, J. Borgan says.
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  Written by Tristan Nivera. This article is being read by an automated
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  voice generated by Everlet. New kinds of home construction inherently carry
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  risks, but philanthropy could make a big difference in bridging the gap.
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  In a recent statement, JP Morgan Chase's housing research group highlighted a
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  few ways that philanthropy is accelerating new construction methods. That includes modular
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  home building and new emerging technologies that need money and partnerships to
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  get off the ground. Banks are responding to the nationwide housing supply
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  shortage, with JP Morgan investing seven hundred fifty billion dollars into the
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  housing market through its American Dream Initiative to build or preserve one
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  million affordable housing units through twenty thirty five. Housing finance leaders think
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  systemic reform to encourage more home building is the path to broader
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  affordability. And of course, philanthropy can't sustainably buoy the housing market. But
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  JP Morgan says where are certain niche spaces where philanthropy can make
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  a big difference. Innovative home building techniques help to lower costs and
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  shorten timelines, delivering more affordable homes at a lower price, said Laurie
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  Skoman, Executive Director of Housing Access and Affordability at Jabe Morgan Chase's
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  Philanthropy Arm. Jabe Morgan said, There are four places where the Philanthropy
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  dollars it's announced are making a major difference. Helping finance tests and
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  design work for early stage pilots of new building technology. Helping developers
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  scale to build their capacity and experience. Expanding their access to flexible
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  financing and bring ideas to market faster. Building public private partnerships to
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  make sure new housing ideas are well received. Philanthropy has the power
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  to support early pilots, help fill funding gaps, and scale what's proving
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  effective, and we're excited to see how innovative construction contributes to a
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  more accessible and resilient housing market, Skoman said. Modular Advantages.
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  In Portland, Oregon, JP Morgan announced late last month it is backing
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  a pilot program to reconstruct homes out of mass timber, a framing
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  style that relies on large engineered wood panels. The pilot, Mass Casitas,
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  is replacing homes that burned in the twenty twenty Echo Mountain Fire.
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  Developer Hacienda Community Development Corp is testing out six new mass timber
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  homes. The studio, two and three bedroom modular homes are made of
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  prefabricated sections of thick compressed wood. They take less energy to build
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  and are faster to assemble on site compared to standard construction, hacienda
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  said. And it's far faster. Hacienda completed all six homes in four
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  months. A standard home can take eighteen months or more to build.
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  It's an example of a new kind of construction material that needs
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  financial backing to test out before gaining widespread adoption. Mass timber could
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  also be more energy efficient and more fire resistant, but hacienda and
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  other builders need time and experience before they can build at scale.
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  With the affordability crisis straining American homes, more major companies are willing
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  to invest in solving the kitchen table issue, and that starts with
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  expanding housing supply and making building cheaper. Bank of America, for instance,
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  has provided fifteen billion dollars in loans and grants since twenty nineteen,
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  and City launched its Blueprint for Housing Opportunity Initiative, a sixty billion
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  dollar plan to support the preservation and construction of two hundred fifty
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  thousand homes. But philanthropy isn't just for banks. Short-term rental company Airbnb
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  also announced it would invest 250 million into financing affordable housing projects
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  across the country. Sam Sheets, a strategy executive for community and affordable
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  lending at JPMorgan Chase, told Realtor dot com registered trademark that high
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  interest rates and the supply shortage of new homes makes it harder
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  for people to break into the housing market, but he says first
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  time buyers and move ups have a better financial future when they
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  can afford homes. If you had to distill the problem statement on
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  the homeowner side, obviously housing affordability is challenging via taxes and insurance,
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  Sheet said. But probably the biggest issue is people trying to buy
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  for the first time, and navigating an environment that is unique.