On Monday, Apple announced a 2.5 billion dollars plan to address the housing crisis in California. It is becoming the latest big tech company to devote money to the problem.
The iPhone’s makers plan includes a 1 billion dollars investment fund for affordable housing and another 1 billion dollars to buy mortgages.
Moreover, Apple also intends to make a 40-acre, worth 300 million dollars property it owns in San Jose, available for new affordable housing.
Apple’s housing plan is a response to the increased pressure the tech giants are under to play an active role in the crisis.
As local tech companies have flooded the region with hundreds of thousands of highly paid employees.
But the supply of housing has failed to keep pace and prices have soared.
According to a real estate site, the median home value in San Jose is now nearly 1 million dollars. It is roughly double the price from 2012.
Last month, Facebook said it would offer 1 billion dollars in a package of grants and loans California. Likewise, Google also pledged 1 billion dollars for a similar effort in June.
Apple is offering a hefty sum but the company can afford it.
An affordable housing expert said that such initiatives could surely relieve some of the pressure on the housing market.