Alphabet Housing

Alphabet Housing | Buffalo, NY | Certified B Corp

 

Exactly how far do the responsibilities of an employer extend? Through the efforts of technological innovation, Silicon Valley has become one of the most sought after living environments for entrepreneurs all over the world. Unfortunately for employees of these tech companies, the limited space and high demand has created a bit of a crisis: From 2010 to 2015 Silicon Valley created 385,000 new jobs but only 58,000 new housing units.[1] Things have gotten so bad that CNBC ran a story in April on how a Twitter employee with a six figure salary is struggling to provide for his wife and two kids.[2]

 

In order to address this conflict Alphabet Inc. has announced its plans to buy 300 apartment units for its employees.[3] These facilities have been ordered through a “modular-home startup” called Factory OS and will operate as a temporary living environment for employees to help alleviate the pressure of the current real estate climate.[4] These units are built in pieces in a lab then fit together on-site.[5]

 

Alphabet is not the only tech company addressing the housing crisis.

Facebook announced plans to build 1,500 units in Menlo Park last July.[6] However these units were planned more to address the housing crisis itself than just offer housing for employees, which is why the company made it clear 15% of the units would be reserved for low income families.[7]

 

In an industry as competitive as tech innovation it’s important for companies to go above and beyond for their employees or risk losing the best programmers and engineers to their competition. The Alphabet Inc. housing is a good start but Silicon Valley has a long way to go before this housing crisis goes away.

 

Opinions expressed are not necessarily those of Raymond James & Associates. Information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Information provided is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security.

[1] https://www.wired.com/2016/07/facebook-apartments-wont-fix-housing-theyre-good-start/

[2] http://www.cnbc.com/2017/04/24/twitter-employee-earning-160000-says-hes-barely-making-ends-meet.html

[3] https://www.wsj.com/articles/google-bets-on-modular-homes-to-fill-housing-demand-1497448838

[4] http://fortune.com/2017/06/14/google-modular-home/

[5] http://www.foxnews.com/tech/2017/06/14/google-bets-on-modular-homes-to-help-employees-with-soaring-housing-costs.html

[6] https://www.wired.com/2016/07/facebook-apartments-wont-fix-housing-theyre-good-start/

[7] https://www.wired.com/2016/07/facebook-apartments-wont-fix-housing-theyre-good-start/

 

 

  

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