American tech giant Google parent company Alphabet Inc is now into the final leg of finalising an order to purchase 300 apartment units from a modular-home startup Factory OS. The move is aimed at addressing the housing crisis in the Silicon Valley as well as battle the sky-high rent – the tech giant is likely to use new dwellings to serve as short-term housing for its employees. As per a report by the Wall Street Journal, the expected value of the deal is somewhere between $25 million to $30 million. Google’s latest development comes in the back of what some real estate experts describe as a housing crisis in the tech-centric area. The multinational firm and others have attracted a lot of people from across the globe to the area and the limited amount of space available has sent housing prices soaring, report stated.
WSJ also reported that the move, has left Google’s rival companies including social networking giant Facebook, shift focus towards expanding in housing segment. For instance, Facebook is reportedly planning to build 1,500 housing units at a cost of $20 million in Menlo Park, California, but details on when that project might be completed is still unknown. Prices of homes in tech hub regions such as San Jose, Palo Alto and Cupertino rank at the top in the US realty rate charts and they have jumped to record levels again in April this year.
As per various segment experts, modular homes are gaining traction in the construction industry and instead of building a home or an apartment from scratch, these modular-home companies rather try to assemble part of buildings in a factory and then deliver it to the home site. The report also stated that over the past few years, such technology has been used aggressively to help alleviate housing shortages across the country including areas like Miami, New York and Detroit.