Freddie Mac recognizes that effective housing solutions should not follow a one-size-fits-all approach. As part of its mission to provide liquidity, stability, affordability and equality to the housing market, Freddie Mac created its Housing Solutions team in 2020 to reduce barriers to homeownership and provide solutions to some of the nation’s toughest housing challenges. 

The team is focused on addressing limited access to credit, housing inequalities, creation and preservation of affordable housing supply and advancement of homeownership education.

To do so, they utilize a data-driven approach to conceptualize, design and test solutions specifically aligned with the strategic markets in which they plan to deploy them.  Key learnings from implementation and the identification of successes will result in an ability to scale impact to additional markets. 

Historically, Freddie Mac and other industry partners have aimed to address housing challenges at a macro level.  As the market evolves and the landscape becomes ever more complex, it recognizes the opportunity to dive deeper into the communities it serves to address challenges differently.

Finding solutions to unique challenges may require a new lens with the creation of smaller-scale “1% solutions” that, in aggregate, can have a significant impact.  It is also clear that collaboration with both traditional and non-traditional housing ecosystem partners is critical to drive progress, gain different perspectives and expertise and to ensure resonance and trust within community engagement. 

As an example of exploring new approaches, it is well-documented that affordable housing supply issues are exacerbated in communities of color and under-invested and underserved communities. Freddie Mac recognizes that it is important to start looking at solutions at the very beginning of a community lifecycle in order to begin making a difference on housing supply as an end result. 

In many communities experiencing affordable housing scarcity, developers may be predominantly white and not fully attuned to the needs of communities of color or incentivized to focus on affordable housing. 

The Housing Solutions team has created the Freddie Mac Develop the Developer program to provide technical training, mentorship, resources and connections as a way to nurture local female and BIPOC developers with a strong commitment to develop or revitalize local, under-invested markets. 

It’s just one way that Freddie Mac is looking to build the future of home and is convening and collaborating with the industry together.  For more information on Freddie Mac’s Housing Solutions team, visit https://sf.freddiemac.com/housingsolutions.