AFL-CIO Housing Investment Trust has announced a $1 billion investment initiative to support jobs and housing creation in the Bay area over the next five years. The HIT has $500 million ready to invest in housing across sectors, including market-rate, workforce and affordable housing product, and plans to leverage the additional $500 million. The initiative will also drive job creation, generating 4,000 union construction jobs, 12,000 total jobs and 4,000 housing units in the Bay Area by 2025.

Prior to the pandemic, San Francisco suffered from a severe housing affordability problem. The pandemic has put even more strain on the market. With job loss and a continued shortage of housing—particularly affordable housing—there is increasing demand for apartment units. To provide a broad swath of housing, the HIT will work closely with local unions, investors, community groups, the public sector, low income tax credit equity investors, financing partners and for-profit and nonprofit real estate developers.

Prior to the pandemic, the San Francisco market suffered from a severe housing crisis, then the pandemic suppressed rents and de-stabilized the market. In fact, San Francisco has been the hardest hit apartment market in the country. According to a report from Zumper, San Francisco rents are down 9% year-over-year, which is the largest decline in more than three years. The average price of a one-bedroom in the market is now $3,360. While rents declined dramatically as a result of the pandemic, San Francisco is still among the most expensive markets in the country. According to the HIT, 40% of San Francisco residents remain cost burdened, meaning that they pay more than 30% of their income on rent. In addition, more than 8 million San Francisco residents have filed for unemployment.