Apple's $ 2.5 billion commission to tackle California's Housing Crisis

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Apple Inc.

$ 2.5 billion towards affordable housing in California, the latest technological giant will commit to pledging great interest to help tackle concerns that Silicon Valley's success pushed people out of the area.

The company said on Monday that it would invest $ 1 billion in an affordable housing investment fund that will help the state to develop and build low to moderate housing.

Apple said it would invest a further $ 1 billion to help more home buyers first with funding and payment assistance down.

Mr Cook, left, and California Gov. Gavin Newsom provides the land in San Jose for affordable housing.

Photo:

Apple

The high-tech company will use $ 300 million worth of its land to develop affordable housing in San Jose, Calif., He said. An additional $ 200 million will go towards low-income housing in the Bay Area, Apple said. The commitment includes $ 150 million towards a low income housing fund and a $ 50 million donation to the nonprofit Destination: Home.

Apple's announcement follows similar commitments, albeit smaller, by some other technical supports to address affordable housing.

Facebook Inc.

Last month it said it would provide $ 1 billion to help alleviate such housing shortages in the region.

In June,

Alphabet Inc.

Google Google committed $ 1 billion to build housing in the San Francisco Bay Area.

Microsoft Corp.

He said in January that he would spend $ 500 million on new housing in the Seattle area around his headquarters Redmond, Wash., A region where affordable housing has led to a shortage of affordable housing.

Housing costs in California are rising faster than other states. Between January 2012 and January 2019, house prices increased by 85.4%. These are three of the main conditions that have raised prices. Video blends and photo: Carlos Waters for The Wall Street Journal (Originally published March 8, 2019) t

The high-tech companies are among the richest companies in the world. Market capitalization by Apple and Microsoft is over $ 1 trillion, and last week the iPhone maker reported $ 55.26 billion as a net profit for its latest fiscal year. At the end of September, it had more than $ 200 billion in cash and similar assets.

Growth in high-income jobs in Silicon Valley and in the Seattle area has rapidly boosted domestic prices for the last decade. This helped the areas to be non-affordable for many middle-class workers, including teachers and emergency responders, and is continuing to grow on additional growth plans for the companies in their home regions.

The average selling price for a single family home in the San Francisco Bay Area in September was $ 880,000, down year after year but is still higher than the state median of $ 605,680 and the national median of $ 100. 275,100, state and real national data shows positive groups.

“The high cost of housing – for homeowners and renovators – is the issue of defining quality of life for millions of families across this state, one that can only be settled by building housing. more, ”California Gov.

Gavin Newsom

He said in Apple's news statement announcing his $ 2.5 billion commitments.

The company said its new funding commitments will take about two years and that the capital it earns on the investments will be reinvested in future projects over the next five years.

“Before the world became known to Silicon Valley, and before we introduced technology into our pockets, Apple called for the home of this region, and we feel we have civic responsibility to make sure it remains a vibrant place where you can. people to live, have a family and contribute to the community, ”Chief Executive

Tim Cook

said the newspaper.

The Wall Street Journal, Dow Jones & Co., has a commercial agreement to provide news through Apple's services.

Write Patrick Thomas at Patrick.Thomas@wsj.com

Copyright © 2019 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1pdeb8

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