Why Big Banks Are Pouring Billions Into Reviving the Housing Market

JPMorgan Chase, the nation's largest bank, is a name typically attached to big numbers. But a new plan to invest $750 billion into housing market initiatives in the next decade stands out.The bank announced this summer it would deploy $750 billion into the housing market through 2035. Its "American Dream Initiative" aims to build or preserve 1 million affordable housing units and help 500,000 customers purchase homes, 200,000 of them for the first time. It's not alone. Wells Fargo, Citibank, and Bank of America—which, with JPMorgan, comprise the "big four" of American finance—have each announced major housing initiatives. And, like the $5 trillion JPMorgan Chase, they're directing tens of billions toward the problem.The nationwide housing supply shortage, as well as rampant pessimism among young people, make the issue too big to ignore, says Sam Sheets, a strategy executive for Community & Affordable Lending at JPMorgan Chase."At the end of the day, it's a function of supply and demand," Sheets says. "Supply is the big issue—and supply of homes at the right price point."Housing has long been a major focus for banks. Bank of America, for instance, has provided $15 billion in loa...