Earlier this week Apple Inc. announced a $2.5 billion pledge toward affordable housing in the Bay Area. The housing crisis has long prevailed in Silicon Valley and Apple’s initiative follows in the footsteps of other tech companies looking to make housing more accessible in Northern California. In January, Microsoft Corp. announced an investment of $500 million in affordable housing in Seattle’s metropolitan area, and in June, Google revealed an investment of $1 billion for 20,000 homes in the Bay Area. In October, Facebook also joined in the fight, committing $1 billion to help address the affordable housing crisis in California1.
Silicon Valley has been home to Apple since its beginnings and the company feels it has a responsibility to the local community. On top of the multibillion-dollar investment in the Bay Area, its capital return will be also be reinvested for future projects in California for the next five years.
“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.”2 – says Tim Cook, Apple’s CEO.
Apple’s $2.5 Billion investment is broken down as follows3 :
- $1 billion in affordable housing investment fund
- $1 billion in first-time homebuyer mortgage assistance fund
- $300 million in Apple-owned and available land for affordable housing
- $150 million in Bay Area housing fund
- $50 million to support vulnerable populations
While this money alone will not solve the crisis, at least it’s a start in the right direction for ensuring everyone in the region has a place to call home