Ground work is underway at the site of a planned mixed-income housing development at 800 E. St. Johns Ave. in Austin on Tuesday, Sept. 15, 2026. Airbnb announced a $6.4 million investment to help finance 201 income-restricted apartments at the long-delayed St. John project, part of a larger development that will include more than 500 homes, retail space, a park and public artwork. (Jay Janner/Austin American-Statesman)

The world’s largest short-term rental marketplace is betting millions on housing in one of Texas’ biggest cities.

Airbnb pledged $6.4 million in support of the St. John redevelopment in Austin-a long-planned affordable housing initiative at the northeast corner of St. Johns Avenue and Interstate 35, according to the Austin Business Journal. The site was formerly a Home Depot and a Chrysler Dealership

“Airbnb’s inaugural $6.4 million investment will support the development of 201 affordable housing units in Austin, Texas,” the company wrote in a Monday news release. “These units are part of the larger St. John redevelopment project, a public-private partnership that will include more than 500 units of housing, retail, a park, and public art showcasing work by local artists in an historically underserved community.”

The announcement marks the launch of Airbnb’s Housing Accelerator, a $250 million commitment to provide “last-dollar” financing for stalled housing projects.

“Research commissioned by Airbnb estimates that 750,000 housing units across the country have cleared most regulatory hurdles but lack the final financing commitment needed to break ground,” the company wrote.

Airbnb estimates the investment could help unlock more than $5 billion in total housing construction over the next decade.

“Austin leads the national conversation and the actual outcomes on housing because we’re doing what it takes to build,” Austin Mayor Kirk Watson said in the release. “I’m glad to see Airbnb investing in housing projects like St. John’s.”

Airbnb has pledged $6.4 million to support the St. John redevelopment in Austin, starting with 201 units. The funding is part of a $250 million commitment to affordable housing across the U.S. (Airbnb) An update on St. John redevelopment

Austin acquired the St. John site-a 19-acre property at the heart of the historic St. John neighborhood-in the early 2000s.

The city developed a community-backed vision for the St. John site in 2017 and partnered with Greystar and the Housing Authority of the City of Austin (HACA) in 2023 to bring it to life, according to the project website.

Roughly 530 rental units are planned for the property, 50 percent of which will be affordable housing for residents making between 50 and 70 percent of the Austin Median Family Income. The redevelopment will also expand St. John Pocket Park to 4 acres, featuring 15,000 square feet of commercial space.

St. John is currently under construction, with demolition, underground utility groundwork and continued preparation expected in the next month, according to an August 2026 timeline update. A HACA representative previously told the Austin Business Journal residential units were expected to come online by spring 2028. An expected $11 million payment from Greystar and HACA will also support the development.

A broader housing initiative

Beyond its $250 million investment, Airbnb is awarding five $1 million grants to innovators developing faster, cheaper ways to build homes.
“The funding will support innovative housing ventures that have demonstrated their potential but need additional capital to deliver more affordably-priced housing at scale,” the company wrote in the release.

The short-term rental giant said it will support community organizations working towards pro-housing reforms, including leaders with An Austin for Everyone (AURA).

“Every community is different and Airbnb will support the local leaders on the ground who are advocating for the housing solutions that work for their city, including reduced permitting timelines, increased density allowances, and limits on upfront impact fees,” the company wrote.

Later this year, Airbnb will launch its Airbnb City Index, a dataset offering a window into the state of housing policies and outcomes across the U.S.

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This article originally published at Airbnb backs plan to turn old Texas Home Depot into 500 homes.