Google promised to contribute more than $1 billion as an aid for the crucial housing crisis in the region which includes its head office and Silicon Valley. Google Chief executive Sundar Pichai declared about the initiative, claiming the internet status wants to be “a good neighbor” in the area outraging with technology companies. The step comes with Silicon-Valley firms under pressure over the spine in real estate prices, as a resolution of lack of affordable housing and developing a homeless problem in the San Francisco Bay region.
The region has ventured thousands of highly paid tech workers that have pinched the housing supply and led to a boom in prices.
According to Pichai, Google had previously invested in housing in areas where it has operations.
In a blog post, Pichai claimed, “today we’re announcing an additional $1 billion investment in housing across the Bay Area ”. The largest brick of this would be to “repurpose” over the next 10 years for housing some $750 million of Google’s lands, most of which are recently encircled for commercial spaces.
He said, “This will enable us to support the development of at least 15,000 new homes at all income levels in the Bay Area, including housing options for middle and low-income families ”.
He also added, “we hope this plays a role in addressing the chronic shortage of affordable housing options for long-time middle and low-income residents. ”
The largest unit of the Alphabet holding company also promised a $250 million investment fund providing incentives for building at least 5,000 affordable housing units across the market. An additional $50 million will be filtered through the philanthropic arm Google.org to nonprofits emphasized on homelessness and displacement, including to some $18 million in approvals given over the past five years.
Google CEO said, “in the coming months, we’ll continue to work with local municipalities to support plans that allow residential developers to build quickly and economically”.
He also added, “ our goal is to get housing construction started immediately, and for homes to be available in the next few years.”
Earlier this year, companies and organizations, along with one began by Facebook CEO Mark Zuckerberg and his wife, promised some $500 million for affordable housing in the same region in reply to a request from Governor Newsom.
Microsoft, based in the northwestern city of Seattle, has promised $500 million for a similar initiative.