The large tech companies such as Apple Inc. (NASDAQ:AAPL) Alphabet Inc (NASDAQ:GOOGL), Microsoft, and Facebook woke up to put an end to the housing crisis they created on the West Coast. Their expansion on the Bay area that comprises San Jose and San Francisco has made several people homeless. The population in the Bay area has considerably increased between 2010 and 2018 by 8%, whereas the growth of housing units is less than 5%. As a result, the prices of houses have surged significantly in that area.
Software engineers in the Bay area earn higher a salary
The salary of locals is much lower in the Bay area. Local people’s housing problems in this area are further aggravated with software engineers earning 40% higher salary ($1,60,000) at tech giants such as Facebook, Apple, and Google. The house rents in this area surged a whopping 21% between 2010 and 2017. However, the rents in New York rose by just 9% during the same period.
According to a volunteer – Tamara Mitchell, lack of affordable houses in San Francisco is making several people homeless. They feel like pushed out of their homes. Tech companies pay higher wages for Asian males and the whites for skilled jobs leaving low salaried jobs for Latinx individuals and blacks.
Apple, Facebook, Google, and Amazon to fix the housing crisis
Large tech companies have come forward to fix the housing crisis. However, it is too early to decide to know whether publicity gimmick or a real effort. Amazon contributed a whopping $38 billion to lift the economy in Seattle since 2010. Apple is pledging $2.5 billion to fix the economic crisis. Facebook will mobilize funds of $500 million through a partnership for the future of the Bay area. Google contributed a sum of $1.0 billion to help overcome the housing crisis. The tech industries have created 500,000 jobs in recent years in the Bay area, but houses are only 50,000. The large commitments by tech giants won’t solve the housing crisis.
Don’t blame tech companies for the housing crisis
No need to put the entire blame on tech companies for the homeless caused by surging housing costs on the Bay area. The costs of the house increased because of the land use policy and higher taxes in the past 40 years.