Tech giant, Microsoft, has announced that it is pledging $500 million to help develop affordable housing in the Seattle area.
Microsoft's press release provides data from 2011 to 2018, stating that the median home price rose 96%, while median household income only went up 34%. Housing prices rose because Seattle became a hotbed for Silicon Valley satellite offices.
Microsoft's statement says: "Median income in the region hasn't kept pace with rising housing costs, increasingly making it impossible for lower- and middle-income workers to afford to live close to where they work."
Microsoft's President, Brad Smith, tweeted that the $500 million investment is an important step, and it is just the beginning. "We all need to work together to solve this crisis. #affordablehousing"
See Smith's tweet below:
Microsoft wants to ensure a healthy community, by providing a very necessary affordable housing.
The tech giant broke down its donation into three pots of cash. See the breakdown below:
- $250 million will support low-income housing, which Microsoft hopes will "accelerate the construction of low-income housing across the region."
- $225 million will be used as subsidies to preserve and construct middle-income housing.
- $25 million will be donated as "philanthropic grants" to address homelessness.
America Online (AOL) mentions that the arrival of tech firms in cities like Seattle and San Francisco have been linked to climbing house prices and increased homelessness.
Will other major technology companies like Microsoft make similar donations? Is this something you think is important? Leave your thoughts and comments, we'd love to hear what you think.
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