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.

By Jake Leary

entrepreneur daily

This story originally appeared on PCMag

via PC Mag

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.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Making a Change

She Wrote An 'Escape Plan' to Quit Her Job and Move to an Island. Now She's There Generating Nearly $300,000 A Year

"My detailed, step-by-step plan on how I would quit my job and move to a Caribbean island."

Thought Leaders

10 Simple, Productive Activities You Can Do When You Aren't Motivated to Work

Quick note: This article is birthed out of the urge to do something productive when I am not in a working mood. It can also inspire you on simple yet productive things to do when you're not motivated to work.

Business News

Lululemon Founder Bashes Company's 'Diversity and Inclusion', Calls Models 'Not Inspirational': 'You're Not Everything to Everybody'

Chip Wilson left the company in 2015 after controversial comments forced him to step down as CEO in 2013.