SAN FRANCISCO (Reuters) – The lack of housing in California’s Silicon Valley has became so difficult that Facebook Inc (FB.O) on Friday projected getting homebuilding into its own hands for the first time with a idea to build 1,500 units close its headquarters.
The development of Facebook, Alphabet Inc’s Google (GOOGL.O) and other tech companies has forced neighbourhoods in the San Francisco Bay location that were not processed for an influx of tens of thousands of labors at the time of the past decade. Home costs and travel times have increased.
Tech firms have reacted with measures like internet-equipped buses for employees with long travel. Facebook has granted at least $10,000 in incentives to workers who step nearby to its offices.
Those moves, however, have not decreased objections that tech companies are creating societies costly, and they have mainly unsuccessful to discuss the area’s housing deficit.
“The problem with Silicon Valley is you don’t have enough supply to keep up with the demand,” stated Sam Khater, deputy chief economist at real estate research firm CoreLogic.
With Facebook’s building idea, the company stated it needed to contribute in Menlo Park, the city some 45 miles (72 km) south of San Francisco where it went in 2011.
The company stated it needs to create a “village” that will also have 1.75 million square feet of office area and 125,000 square feet of retail area.
“Part of our vision is to create a neighbourhood centre that provides long-needed community services,” John Tenanes, Facebook’s vice president for world-wide resources, stated in a statement.
The company stated, the 1,500 Facebook housing units would start for everyone, not only for employees, and 15 percent of them would be presented at below market prices.
Facebook stated it predicts the study process to consume two years.
Alphabet has taken a smaller step, buying 300 modular apartment units for short-term employee housing, the Wall Street Journal reported last month.
Menlo Park Mayor Kirsten Keith stated in a meeting that there were trouble regarding whether the Facebook plan would grow traffic, a subject the city’s planning branch would research.
She stated, however, that Facebook’s plan suits with the city’s own long-term idea for growth, and that the city was eager regarding the extra housing.
Facebook’s Tenanes stated the frequency of the projected growth could also attract investing on transit plans.
“The region’s failure to continue to invest in our transportation infrastructure alongside growth has led to congestion and delay,” he stated.