Why Big Tech Billions Won't Dent California's Housing Crisis

New multibillion-dollar affordable housing commitments from leading tech firms may build out thousands of units, but that's nothing next to California's gargantuan housing shortage.

2 minute read

November 9, 2019, 1:00 PM PST

By Philip Rojc @PhilipRojc


Cupertino, California

Uladzik Kryhin / Shutterstock

"The cost of housing has caused people to flee one of the hottest job markets in the nation, in one of the most beautiful places on earth," writes Conor Dougherty of the Golden State's housing crisis. 

This year, Google, Apple, and Facebook have all thrown in billions of investment dollars to address the shortage. Though laudable, those efforts alone probably won't make much of a difference. One reason is the absurdly high cost of subsidized housing. A single unit in California averages around $450,000, and that figure balloons even higher in the big metros, Dougherty reports. 

"Given those figures, the $4.5 billion that Google, Apple and Facebook have earmarked would create about 10,000 housing units." But against the state's housing deficit of roughly 3.5 million units, that's a pittance. 

According to Carol Galante of UC Berkeley's Terner Center for Housing Innovation, "These investments are an opportunity, because clearly the tech companies want to engage [...] but not having them coordinated with the larger conversation about how we are going to make the public policy changes that the Legislature is struggling with — unless you marry those things together, it's not going to work."

Decades of political decisions favoring slow (or no) housing development set the stage for California's current predicament. Democratic state senator Scott Wiener, the backer of several bills to reduce barriers to housing, all of which have failed so far, put it this way: "California cities have systematically made it hard to impossible to build housing, and money can't fix that."

Wednesday, November 6, 2019 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 16, 2025 - Diana Ionescu

Blue and white Seattle Link light rail train exiting concrete Downtown Bellevue Tunnel in Bellevue, WA.

Why Should We Subsidize Public Transportation?

Many public transit agencies face financial stress due to rising costs, declining fare revenue, and declining subsidies. Transit advocates must provide a strong business case for increasing public transit funding.

April 7, 2025 - Todd Litman

Two people on bikes in red painted bike lane with bus in traffic lane next to them.

Understanding Road Diets

An explainer from Momentum highlights the advantages of reducing vehicle lanes in favor of more bike, transit, and pedestrian infrastructure.

April 17 - Momentum Magazine

Aerial view of large warehouses across from development of suburban single-family homes in Jurupa, California with desert mountains in background.

New California Law Regulates Warehouse Pollution

A new law tightens building and emissions regulations for large distribution warehouses to mitigate air pollution and traffic in surrounding communities.

April 17 - Black Voice News

Purple Phoenix light rail train connected to overhead wires at sunset.

Phoenix Announces Opening Date for Light Rail Extension

The South Central extension will connect South Phoenix to downtown and other major hubs starting on June 7.

April 17 - Arizona Republic