How affordable is the Silicon Valley? And what tech companies are doing to help solve the housing crisis
Tech companies across the Bay Area are becoming more involved in solving the housing affordability crisis
December 11, 2019
- Based on the median household income for the San Jose metro area of $117,474 as of 2017, a household can generally afford to spend $2,936 per month on housing (according to the affordability standard that housing costs should not exceed 30% of your annual income). Because of the high costs associated with living in the Bay Area, roughly 47% of the population are unable to afford housing.
- Tech companies across the Bay Area are becoming more involved in solving the housing affordability crisis: Google, Apple, and Facebook have cumulatively contributed an estimated $4.5 billion dollars to help combat the Bay Area’s housing issues. Each company has their own plan on how the money is going to be distributed. For example, Apple plans to put $1 billion towards affordable housing investment, $1 billion to first-time homebuyer mortgage assistance, $300 million for development on Apple-owned and available land for housing, $150 million to the entire Bay Area housing fund and $50 million to support vulnerable populations.
- Many tech companies view these donations as investments in order to maintain their roots not just geographically, but to maintain and attract a highly talented labor pool in an extremely high-cost housing area
Sources: National Association of Realtors, Axiometrics, Census and JLL Research