Wednesday, June 19, 2019

Google Ready to Invest $1 Billion to Build Up to 20,000 New Modular Homes

Google unveiled a $1 billion plan to build up to 20,000 new homes in the San Francisco, CA Bay Area, with a special focus on affordable housing.

The Mountain View-based search giant said it will ask city governments to rezone $750 million worth of office and industrial land that it currently owns, and give it the green light to build 15,000 new homes over the next 10 years. The company will also open up a new $250 million investment fund for real estate developers, in hopes of building at least 5,000 affordable homes across the region.

Google CEO Sundar Pichai said in a blog post. “Our goal is to get housing construction started immediately, and for homes to be available in the next few years.

His Alphabet Inc.-owned company quietly sent out requests for proposals to construction startups like Menlo Park-based Katerra, and Vallejo-based Factory OS to figure out how much it would cost to build up to 10,000 modular homes around its growing headquarters in Mountain View.

Google’s median wage for their employees is almost $250,000 and the cost of an apartment in Santa Clara County would rise by $765 per year if Google can’t step in to help build affordable housing.

Google’s investment in more and more properties in the Bay Area has now extended south to San Jose where it is buying huge parcels of prime land to expand both its core businesses and affordable housing.

If Google is taking such an aggressive approach to housing on the West Coast what do you think Amazon will do when it’s time to build their new second headquarters in the Crystal City area of DC? Will they turn to existing modular home factories in the area or will they entice new mod factories to open?

Only time will tell.

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