Apple apparently wants to get into the real estate business. The tech company has already invested a total of 1.3 billion US dollars in the purchase of apartments in California. And that is just the beginning. With this, the iPhone inventor wants to fight the rampant housing shortage in the US state, according to its own statements.
Apple lets words follow deeds
Really the project of the Tech company does not come as a surprise. In fact, Apple had already announced its extensive investment in 2019. At that time, there was talk of a total investment of 2.5 billion US dollars. However, the company does not want to secure apartments for its own workforce with it. The goal is rather to declare war on the housing shortage. Apparently, Apple’s initiative is now taking shape. Of the targeted 2.5 billion, Apple has probably already invested 1.3 billion. Consequently, it shouldn’t be too long before the total amount is spent and the targeted amount of affordable housing is created.
A new line of business for Apple?
Of course, the question is what the tech company is aiming for with its extensive investment. If it is to be assumed to have good intentions, then there may well be something to the fight against the housing shortage. The housing shortage in California is worse than in few other places in the world. Getting affordable housing here is almost unthinkable for normal earners. But this is not due to the beautiful nature and impressive cities. Rather, metropolises like San Francisco command utopian rents because they are located in the immediate vicinity of Silicon Valley. The most renowned big tech companies have settled here.
As they settled here, IT experts arrived from the rest of the world, who in turn naturally needed living space. The companies’ salaries rose immeasurably, and with them the rents in the area. Consequently, Apple, Google and Co. bear at least some of the blame for the rapid rise in housing prices. If you take a look at the current real estate market in the region, it can make your head spin. Real estate moguls and the heavy rich are throwing around vast sums of money in the context of apartment or house purchases. The result is a homogeneous population of residents, which is not good for any region. Apple now wants to address this problem.
Focus on different social classes
Apple did not launch its project on its own initiative. Rather, the company has enlisted the support of experts for its initiative. More specifically, the Destination: Home and Housing Trust Silicon Valley associations are assisting the iPhone inventor. Together with the real estate experts, Apple has so far invested 1.3 billion US dollars in the construction and development of new living space. The company also wants to help potential buyers. After all, there is another big problem behind this, which is fueling the exploding rents more and more. For example, it is rarely private individuals who purchase apartments and entire houses in the coveted U.S. state.
Rather, billion-dollar real estate companies are buying up more and more residential space. Accordingly, Apple and its partners want to ensure that interested first-time buyers have easier access to their first property. Of course, those living on the streets can only smile wearily about the problem of having enough money to buy a property and not being able to get one. Since the number of homeless people is growing relentlessly, especially in the Los Angeles and San Francisco region, Apple would like to inject some of its investment capital here as well.
Nearly 2000 new housing units
Apple’s housing program is expected to involve nearly 2000 apartments. These are spread across the state.
We are incredibly proud to see families and neighbors moving into new homes as a result of our partnership with affordable housing organizations across California.[…]Apple is committed to finding real solutions that help our communities thrive, and these new projects are tangible progress toward making that promise a reality for so many of our fellow Californians.Kristina Raspe, Apple’s Vice President of Global Real Estate and Facilities
Outreach to Lower Classes
Unlike Germany, the welfare state principle does not apply in the U.S. on the part of the state. This manifests itself, among other things, in weak support for lower strata of the population by the state. Veterans and the unemployed in particular often fall through the cracks in the land of unlimited opportunity. It is not uncommon for this to lead to homelessness. This is another area where Apple wants to get involved. And the company can already report initial successes. The so-called Veterans Square in Pittsburgh is intended to provide affordable housing for precisely those people. The housing project has already existed since March of this year and the success seems to be high. At least that can be gleaned from the words of the building’s director.
“Partnerships like this with Apple are vital. That said, there’s not much out there for people who don’t have a fixed income or access to family resources – it’s heartbreaking. But I’m so glad to be able to help give our residents a fresh start.”Marcus Ferdinand, Veterans Square service coordinator
Apple’s project apparently underscores the company’s policy of being more socially conscious with one another, as well as supporting low-income individuals. For example, as recently as May, Apple also announced it would raise the minimum wage for App Store employees. Whatever the reason behind the project. It appears to be an asset to California’s unaffordable real estate market. On top of that, it distracts from problems currently plaguing Apple. For example, the company must pay a whopping $50 million in damages to disgruntled customers over its vulnerable Butterfly keyboard.