Nuveen’s US affordable housing strategy has secured a $100m (€93m) investment from the California Public Employees Retirement System (CalPERS).

The Nuveen Real Estate US Affordable Housing Strategy, launched in 2023, seeks to generate strong risk-adjusted returns and build resilience among communities in the US through access to affordable housing, the manager said.

In total, Nuveen’s portfolio comprises nearly 32,000 housing units across the US, valued at $6.3bn.

Pamela West, portfolio manager for impact investing at Nuveen Real Estate, said: “This allocation invests in both safe, accessible housing and the creation of community-wide benefits, driving long-term sustainable value and impact.

“We see extraordinary potential in the US affordable housing sector. To move the needle, we drive value through energy efficiency and community programs, including healthcare, education, financial inclusion, and employment services.”

Woodbridge Manor Community, located in Irvine, California

Source: Nuveen

Woodbridge Manor Community, located in Irvine, California

Nuveen said the “affordability” status of nearly 650,000 homes is “currently in need of long-term preservation”.

The manager added that its US affordable housing strategy “aims to preserve housing for residents earning less than 80% of area median income (AMI), with a large concentration of households earning less than 60% of AMI”. 

West added: “The housing crisis continues to worsen. Rent inflation and the demand for rental homes among lower income earners are outpacing supply.

“We’re excited to welcome CalPERS as an investor in our strategy which seeks to support a broad range of positive social outcomes for residents and communities and to generate steady, accretive returns.”  

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