Apple announced this year it would be investing $400 million in collaboration with Housing Trust Silicon Valley and the California Housing Finance Corporation to address the California housing crisis.
Homes in California are in high demand but are still too costly for low-income and middle-income buyers, which has generated the state’s housing affordability problem, particularly in places such as San Francisco and Los Angeles.
Apple announced this year it would invest $400 million in collaboration with Housing Trust Silicon Valley and the California Housing Finance Corporation to address the California housing crisis.
It’s part of a combined $2.5 billion Apple says it will invest some years on the project.
Homes in certain areas of California remain too costly for low-income and middle-income homeowners, causing a gap in the state’s home affordability. The issue in Silicon Valley, where Apple is based, is especially severe because highly paying tech employees may pay more for small housing supply, pushing up prices.
Part of Apple’s $400 million would be used to build a program that would support home-buyers with small- to mid-income first-time incomes. This would also be used to build more affordable housing projects throughout California, including “approximately 250 additional affordable housing units in the Bay Area,” Apple said.
Many of the units would be designated for individuals with intellectual handicaps, elderly people, retired elderly persons and veterans.
Apple made the original pledge of $2.5 billion in 2019. Here’s how it expects to invest the capital in the years ahead:
1 billion dollars were earmarked for an infrastructure plan for subsidized housing in California.
$1 billion would be invested on helping first-time mortgage homebuyers.
$300 million would be used to construct sustainable housing on Apple land.
$150 million would be spent in a rental project for the Bay Area.
Throughout Silicon Valley, $50 million is being invested on fighting homelessness.