Facebook has indicated that the high costs of living in Silicon Valley, where it is headquartered, could prompt the company to relocate. Elliott Schrage, Facebook’s chief policy officer, said during an annual shareholders meeting this week that the pricey cost of housing in San Francisco—where another Facebook campus is planned—must be addressed “if we’re going to remain a company in Silicon Valley for the long-term.”
Facebook’s announcement of a new San Francisco office last year has sparked investor concerns that the Bay Area’s high cost of living could impede the company’s ability to attract and retain employees. The company’s main campus remains in Menlo Park, Calif. “Our position is that Silicon Valley has been this extraordinary engine of economic opportunity, and if we can’t solve the housing and transportation issues, Silicon Valley won’t be Silicon Valley,” Schrage said. “These companies like ours will expand elsewhere. So we feel a real sense of urgency around that.”
Some economists and news reports have predicted a mass exodus from Silicon Valley to Middle America if housing costs don’t ease soon. Realtor.com®
reported this week that California’s affordability crisis is prompting more residents to look at less expensive areas outside the state. “Our research shows that many California residents may have reached their breaking point,” says Danielle Hale, chief economist at realtor.com®. “Affordability is pricing them out of the California home market, and many are searching for more affordable options in other areas.”
Facebook has allocated more than $18 million to affordable and mixed-use housing in Silicon Valley, Schrage said. The company is working with private partners and local governments to try to address solutions to the high costs of housing. “We are late, and frankly, we have been slow,” Schrage says. “But I think it is fair to say we have really made an investment, and we consider this an existential issue.”
Source: “Facebook Says it Needs to Address High-Priced Housing ‘If We’re Going to Remain a Company in Silicon Valley,” CNBC (May 31, 2018)
