To be a member of the middle class in San Francisco, California, it currently requires a minimal annual income of $192,000, more than double the national average of $78,442. While the rest of the country pays a mere average of $1,216 a month to rent a one-bedroom, the same space in San Francisco can easily set you back over $3,600. California has the highest poverty rate of any American state and the recent influx of tech companies in the Bay Area—along with the sudden increase in the cost of housing that followed—is cited among the biggest culprits.
With accommodations for over 12,000 employees in Menlo Park, Facebook has become one of the largest companies headquartered in the area and critics have shown little restraint in pointing the cause of the local housing crisis squarely at the social media giant. In response to long-standing complaints, Facebook announced on October 22 that it will partner with the state of California and allocate $1 billion to address the housing crisis the company took part in producing.
According to Facebook Newsroom, the $1 billion will divided five ways: $250 million will go toward developing mixed-use housing in a partnership with the state of California; $150 million will be given to the Bay’s Future Fund toward the construction of affordable housing in the Bay Area; $225 million will be used to create roughly 1,500 affordable housing units on land in Menlo Park previously purchased by the company; $350 million will aid in the construction of affordable housing in other cities with Facebook offices (including Atlanta, Boston and Ashburn, Virginia); and the remaining $25 million will be used to develop housing on county-owned land for teachers and other “essential workers.”
Altogether, the pledge will bring an estimated 20,000 additional housing units to the Bay Area, with an emphasis on helping teachers, nurses, and first responders “live closer to the communities in which they work.”
The news comes months after Google, another tech giant with headquarters in the area, also pledged $1 billion towards affordable housing in June. Just yesterday Apple shared it would one-up both Facebook and Google’s offerings with a $2.5 billion commitment.