Companies need to consider how their growth will impact the wider community.
The growth of tech companies such as Google and Facebook are driving up the cost of homes within their local area according to the independent. Google has come under fire for creating a housing shortage in Dublin and San Francisco. The big question is should companies such as Google and Facebook contribute to create a sustainable property market?
In San Francisco ‘Bay Area’ region where Googles headquarters are located, housing affordability has reached chronic levels, with one-bedroom apartments now averaging more than €3,000 per month in rent. Other tech cities such as Seattle are also affected from companies such as Amazon. Google is currently donating $1bn for community housing in San Francisco to relieve areas from their chronic housing costs. This is due to highly paid tech workers which have put City living out of reach for non-tech employees.
The problem has also spread to Dublin where Googles plan is to subsidise general housing in the area to ease the accommodation crisis. Google employs 8,000 people in Dublin and staff salaries averaging near to €100,000. The tech boom in Dublin has seen companies including Google and Facebook double their highly paid staff numbers in recent years. This has led to local people being priced out of living within the area due to high rents and property prices.
The biggest question is this problem going to spread to other parts of the UK or has this already happened? A strong job market is a major contributing factor for cities such as London, Manchester and Liverpool to warrant the increase in house prices and rental income over the past decade. Large Multinational companies need to recognise the implications they cause to the local environment they operate within and not just on a global scale.