Apple Commits $2.5 Billion To Combat California Housing Crisis

CUPERTINO, CA — Citing skyrocketing housing costs in California, Apple announced Monday that it is pledging $2.5 billion to build new affordable housing and make some of its own property available for development.

“The sky-high cost of housing — both for homeowners and renters — is the defining quality-of-life concern for millions of families across this state, one that can only be fixed by building more housing," said Governor Gavin Newsom in a news release from Apple. "This partnership with Apple will allow the state of California to do just that.”

The company, which is headquartered in Cupertino, cited census data showing that homeownership is at a seven-year low in the Bay Area.

“Before the world knew the name Silicon Valley, and long before we carried technology in our pockets, Apple called this region home, and we feel a profound civic responsibility to ensure it remains a vibrant place where people can live, have a family and contribute to the community,” Apple CEO Tim Cook said in the release.

The $2.5 billion sum will be divided up in several ways, including $1 billion directed to an affordable housing investment fund, and another $1 billion to a first-time homebuyer mortgage assistance fund. Both of these will be co-managed by the state of California, the Los Angeles Times reported.

The rest of Apple's commitment includes a $300 million pledge to make some if its own land in San Jose available for the development of new affordable housing, and a $50 million donation to Destination: Home, a Silicon Valley charity that works to address homelessness.