Housing Fund Targets US Supply Shortage

Walton Global’s Housing Initiative

According to Globe St, Walton Global has unveiled the American Builder Growth and Income Fund, a new housing fund targeting up to $500M for investments. The fund will provide secured, income-oriented loans to homebuilders, primarily for land acquisition and development. Walton, leveraging almost 50 years in land banking, aims to help builders increase capital efficiency and minimize risk by participating at the entitled land stage.

Land Banking Model Gains Importance

The housing fund builds on Walton’s longstanding strategy of acquiring, entitling, and banking land for future development. According to CEO Bill Doherty, the approach prioritizes capital efficiency, as builders partner with land bankers to avoid holding significant land inventory. Walton currently oversees 170 master plans across 88,000 acres, supplying major builders with infrastructure-ready land during a period of heightened demand and limited supply.

Policy Efforts and Market Context

The launch comes as the US grapples with an estimated 1M unit housing deficit, particularly in high-growth metro areas. Legislative efforts are underway to ease the shortage, including the Housing for the 21st Century Act and the ROAD to Housing Act. Both aim to reduce regulatory hurdles and boost production but require further legislative approval before implementation. The step to unlock more supply also includes proposals to expand residential development on federally owned land, an approach some policymakers argue could help ease pressure in constrained markets.