Even Google Employees Can No Longer Afford Housing In San Francisco

Every now and then a story appears in the national media that causes a lightbulb to start flashing incessantly in my head. For me, such a story came to my attention today and relates to how Google is manufacturing housing for some of its employees due to the ridiculous cost of housing in the San Francisco Bay Area.

Here’s a summary from The Verge:

Google’s employees can’t find affordable housing in Silicon Valley, so the company is investing in modular homes that’ll serve as short-term housing for them. The Wall Street Journal reports that Google has ordered 300 units from a startup called Factory OS, which specializes in modular homes. The deal reportedly costs between $25 and $30 million.

Modular homes are completely built in a factory and assembled like puzzle pieces onsite. This method of construction can reduce the cost of construction by 20 to 50 percent, the Journal reports. These apartments can also be put up more quickly to address dire housing needs. In one case the Journal cites, tenants saved $700 a month because of reduced construction costs.

Earlier this year, CNBC published a piece that detailed the difficulty tech companies have in trying to convince possible employees to move to San Francisco, especially when they live abroad. In response, some startups are establishing offices in other cities, like Chicago and Seattle. The other option is to out-tech the housing crisis, as Google appears to be doing with its modular home investment.

Read more here: http://www.zerohedge.com/news/2017-06-17/even-google-employees-can-no-longer-afford-housing-san-francisco