Affordable housing is a huge dilemma in the United States and while advocacy groups, local governments, and corporate firms are trying to help ease the problem, experts said careful cooperation with tech giants could be a key factor in reducing homelessness.
Principal Research Associate with The Urban Institute in Washington, D.C., Corianne Scally told U.S.A Today, "There is no magic solution. Companies need to understand the pressure they are creating, particularly when taxes levied on them aren't covering their impact when you take into account the tax incentives that they get for setting up shop."
Scally added that the lack of affordable housing in the United States should be addressed not just by political leaders and advocates but also by corporate groups, including technology-centered companies.
For Salesforce CEO Marc Benioff, the issue could have had less of an impact if appropriate planning was made beforehand. "There's been really poor planning in our state and our cities," he pointed out, adding that tech companies should continue to extend financial contributions in efforts to provide affordable housing for less fortunate citizens.
One of the factors that affected the affordable housing issue is the rise of high-salary jobs in regions where there is limited housing. This has led to skyrocketing housing prices, with local residents becoming less and less capable of affording homes.
Benioff said of the problem, "The government has to step in, and companies have to help." He cited Paris as an example, wherein the city builds social housing facilities within its booming economy.
Over the past few years, tech-focused companies have been helping fund affordable housing projects in the country. Google, for one, has already donated $3 million to San Francisco's goals of reducing homelessness in the area.
Microsoft, on the other hand, said earlier last month that it will set aside $500 million for home-building efforts within its base site, Seattle. CFO Amy Hood and President Brad Smith said in a blog post that they acknowledge the problem and are dedicated to helping provide solutions for the area's homeless residents.
Facebook, for its part, also pledged that it will help the Bay Area in particular. The popular social media platform is joining hands with a number of foundations for this cause, including Morgan Stanley, Ford Foundation, and Genentech.
Meanwhile, The Tennessean reported that nonprofit Affordable Housing Resources has started the development of micro-homes to help solve Nashville's homelessness crisis. The small homes will be for lease at only $1,000 per month, roughly $200 less than the median studio apartment rental rates in downtown Nashville.
The project is being completed in partnership with Berkshire Hathaway's Clayton Homes and is expected to gain the attention of other tech companies looking for housing programs to fund.
