Citi is pledging more than $60 billion to a new initiative focused on improving housing affordability.

The bank announced Tuesday its Blueprint for Housing Opportunity plan, a five-year commitment dedicated to increasing the housing supply through the creation and preservation of at least 250,000 units across the country.

The Citi Foundation also devoted $50 million in philanthropic grants to nonprofits who address housing issues and financially support residents in their communities, starting with a $1 million grant to the Center for Affordable Housing Lending, Citi said.

"Housing affordability is one of the defining economic challenges of our time, and increasing supply is essential to addressing it," Citi CEO Jane Fraser said in a press release. "By expanding the amount of financing we provide for affordable housing, we open possibilities for prosperity, helping more Americans secure housing they can truly afford. When people spend less on housing, they have more to invest in their families and futures."

The money will support a broad range of housing types, like homes for essential workers, developments with supportive services and cheaper rental options in expensive markets, according to the release.

Citi and Citi Foundation also committed to provide continued support for companies handling housing access and affordability challenges through the Citi Impact Fund, as well as advancing public policy efforts that help increase inventory, such as the Low-Income Housing Tax Credit program, the release said.

Affordability has been improving over the last few months, but historically high home prices and mortgage rates have kept potential homebuyers on the sidelines. The National Association of Mortgage Brokers outlined a four-part housing affordability fix earlier this year, which includes increasing the housing supply, reducing regulatory barriers, lowering transaction costs and expanding financing access. Citi's initiative could add valuable contributions.

Citi Community Capital, which is responsible for the majority of the bank's activity in this space, financed more than $32 billion in affordable multifamily housing lending over the past five years, including $7.6 billion in 2025 that contributed to the creation and preservation of over 35,000 units, according to the release.

Citi also issued and syndicated a $2.5 billion affordable housing bond in 2022.

"The causes for the shortage of quality, affordable housing are complicated but ultimately come down to the imbalance of supply and demand. Increasing supply is where our financial capabilities can make the greatest impact and, through this commitment, we are significantly increasing the capital we are putting to work," said Edward Skyler, head of enterprise services and public affairs and chair of the Citi Foundation, in the release.