My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Google

Google Pledges $1 Billion to Address Bay Area Housing Crisis

Over the next decade, Google plans to convert $750 million of its land from commercial to residential, paving the way for 15,000 new homes.
Google Pledges $1 Billion to Address Bay Area Housing Crisis
Image credit: via PC Mag
2 min read
This story originally appeared on PCMag

Google has pledged $1 billion to help remedy the San Francisco housing crisis.

Over the next decade, Google plans to convert $750 million of its land from commercial to residential, paving the way for 15,000 new homes -- five times the number of houses built in the Bay Area last year. Additionally, it set up a $250 million investment fund intended for developers to build 5,000 affordable housing units.

The company also promised to make housing available to both and middle- and low-income residents and pledged another $50 million to combat homelessness. It has already changed zoning in North Bayshore, California, and is "currently in productive conversations with Sunnyvale and San Jose."

According to Vox, the current price of an average Bay Area home is $1.34 million with roughly a $250,000 down payment -- a price too steep for many tech workers making six figures. Shortages are as problematic as pricing: only one house is built for every 4.5 jobs added, according to the Building Industry Association of the Bay Area.

Of course, Google and its Silicon Valley ilk are the main reason the region is in this predicament. They offer high-paying jobs, but those workers need places to live and have money to spend. They in turn drive up real estate prices and push out those who can't afford to spend more than $1 million on a two-bedroom ranch house in Mountain View.

A group of San Francisco philanthropists, including Mark Zuckerburg, plan to raise another $500 million to address the issue. And Microsoft made a similar pledge earlier this year, dedicating $500 million for affordable housing in the Seattle area.

More from Entrepreneur

Kim's expertise can help you become a strong leader, pitch VCs for capital, and develop a growth strategy.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur