Construction workers

Apple to invest $ 2.5 billion to alleviate California housing crisis

Apple today announced that it will invest $ 2.5 billion in combating crisis of availability and accessibility of housing in the state of California.

According to the company, as rental costs rise (and as the availability of affordable housing does not keep pace with the region’s growth), the population ends up leaving the places where they developed in search of better conditions; in that sense, almost 30 thousand people left the San Francisco region between April and June this year, and the number of homeowners in the bay area is at its lowest level in seven years.

More precisely, Apple’s commitment includes $ 1 billion in popular real estate investments, $ 1 billion on mortgage assistance for buyers who have never owned a property before and Apple’s valued land at $ 300 million for the development of popular housing projects.

The remaining US $ 200 million will be divided as follows:

  • $ 150 million will be earmarked for forgivable loans and grants for low-income people;
  • $ 50 million will be donated to the charity Destination: Home, which aims to reduce the scarcity of housing in Silicon Valley and supports people in vulnerable situations.
Construction workers

The billionaire investment also aims to accelerate and expand the production of new housing, as well as boosting the creation of long-term housing that would otherwise not go off the ground. More than that, Apple wants to help people – mainly teachers, firefighters, rescuers and service providers who live in communities where the rent is high – to acquire a home of their own, as defined by the CEO Tim Cook:

Before the world knew the name Silicon Valley, and long before we carried the technology in our pockets, Apple called this region home and we felt a deep civic responsibility to ensure that it remains a vibrant place where people can live, have a family and contribute to the community. Affordable housing means stability and dignity, opportunity and pride. When these things are out of reach for many, we know that the path we are taking is unsustainable and Apple is committed to being part of the solution to this.

The governor of California, Gavin Newsom, also commented on the importance of the Apple project for the state and its population:

This unparalleled financial commitment to affordable housing and the innovative strategies at the heart of this initiative are proof that Apple is serious about solving this problem. I hope other companies will follow your lead. The very high cost of housing – for both owners and tenants – is the main quality of life concern for millions of families across the state, which can only be corrected by building more homes. This partnership with Apple will allow the state of California to do just that.

Apple is not the only technology giant to take a stand on the California housing crisis: last month, the Facebook announced that it will invest $ 1 billion to alleviate this problem, as well as the Google, which also released a $ 1 billion plan last June.