Apple has announced a $2.5 billion action plan that will attempt to tackle the housing availability and affordability crisis in California. As Engaget states, Apple joins the likes of Facebook, Google, Microsoft, and other tech companies who have pledged money towards sustainable housing in cities affected by the growing tech industry.
Explaining the reason behind Apple’s multi-billion dollar pledge, CEO Tim Cook says that the area has been home to the company since before Silicon Valley became internationally renowned. Therefore “we feel a profound civic responsibility to ensure it remains a vibrant place where people can live, have a family and contribute to the community.”
He continues, “Affordable housing means stability and dignity, opportunity and pride. When these things fall out of reach for too many, we know the course we are on is unsustainable, and Apple is committed to being part of the solution.”
Apple writes that the “availability of affordable housing fails to keep pace with the region’s growth” which is resulting in locals being pushed out of their communities.
According to Apple’s report, almost 30,000 people left San Francisco between April and June in this year alone, and Bay Area homeownership is at the lowest it has been in seven years. Per findings by the McKinsey Global Report, California real estate is three times that of the average Californian household income, and more than 50 percent of households cannot afford their housing costs. The state also has 100,000 homeless people, which is approximately one-quarter of all homeless people in the United States.
Apple’s $2.5 billion will be spent as follows:
$1 billion to the affordable housing investment fund
$1 billion to first-time homebuyer mortgage assistant fund
$300 million Apple-pwned and available land for affordable housing
$150 million to Bay Area housing fund
$50 million to support vulnerable populations