Silicon Valley Making Pledges to Address Housing Construction

Read story
Robison Wells
read story

California’s Bay Area, home to Silicon Valley, where Facebook, Apple, Google, and Microsoft all call home, has a housing problem that is unmatched anywhere, even in Manhattan, the most expensive of cities: the Bay Area’s “low income” designation now applies to a family of four making less than $117,000 a year. The state of California has more than 134,000 homeless, and in the Bay Area that has increased by 17% since 2017.

These tech companies are blamed—and to some extent they are accepting the blame and trying to mitigate it. Apple just pledged $2.5 billion to low income housing, a pledge met by several other tech giants. But according to reports, that pledge is just the tip of the iceberg.

According to a national report by the National Low Income Housing Coalition, there are four million affordable rental homes in the country and eleven million “extreme low-income” households, leaving a substantial gap without access to affordable housing. Across the United States, homes are being built at the lowest rate in twenty years, growing at only 1% annually.

This is combined with “stagflation” where rental rates have increased 32% nationally between 2001 and 2015 but there has been no corresponding increase in wages.

Story tags: