To Attract and Keep Workers, Employers are Jumping on Affordable Housing
Industry | November 23, 2019
Recently, Apple committed itself offering $2.5 billion to help solve California's housing crisis, according to Fox Business' Susan Li and Carnegie Mellon University professor Vivek Wadhwa.
Also, many other U.S. Companies are trying to work around their shortage of workers. Some are hoping to entice talented workers by offering impressive affordable housing.
In a recent publication, the Boston Glove profiled an employer who faced many challenges to entice workers to his assisted living center.
He decided to pick up properties and offer below-market rent to employees. The Globe noted his approach has helped him hire and keep more workers.
In Buncombe County, North Carolina, both the county and city school systems collaborated to offer affordable housing for teachers who will be underpaid, in some areas.
To date, there are other plans in various places in the state.
A Win-Win Situation
The idea of employers offering affordable housing is to minimize costs while creating a more productive workforce and keep their employees from moving on.
According to the National Association of Realtors, many companies are more than likely to offer their employees assisted housing because they need more workers or have a strong desire to live up to civic responsibilities.
The social media giant, Facebook, is headquartered in Menlo Park, CA. With the growth in the housing crisis in California, they are working on a complex called Willow Village which is expected to offer 1,500 housing units, 225 will be designated as below-market rentals.
According to Facebook, employees will be expected to be tenants in the full-price units. The community will also offer retail, grocery, and drug stores as well.
Alphabet, Google's parent company, has plans to purchase hundreds of modular homes to provide short-term housing to their employees.
According to the Federal Reserve Bank of St. Louis, middle-of-the-road prices for homes in the U.S was approximately $130,900 as of October 2019.
In some areas of the country, including California, high-paying jobs have pushed up the cost of housing and pushed out much of the population. As a result, Facebook and Google have been credited for inflaming the housing crisis in California.
Since Apple's announcement of investing $2.5 billion to help the fight against homelessness in California, let's throw in a little political self-serving.
Senator Bernie Sanders, Independent from Vermont, accused Apple of attempting to distract from the problem that Sanders believes they created.
Other giant companies such as Facebook, Google, and Microsoft, have committed to help build affordable housing along the West Coast.
These mega giants are not the only ones jumping on the bandwagon for affordable housing.
According to FOX Business, colleges and universities have been working on partnerships to offer sponsored housing for retirees on or near their campuses.