Advisory Center for Affordable Settlements & Housing

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Affordable Housing Crisis in Silicon Valley

Simply put, housing is considered affordable when a household pays no more than 30% of its total income for housing costs (including rent or mortgage, insurance, taxes, and utilities). Housing that receives government subsidies and has income restrictions governing occupancy is known as “affordable housing.” Silicon Valley faces a housing crisis. While arguably one of the most successful places on earth – if Silicon Valley were a country, it would have the 6th largest GDP in the world1 – there is significant income disparity. We have some of the highest incomes in the country, but we also have people on fixed incomes and people who make minimum wages. These residents compete for housing in one of the most expensive housing markets in the nation. Relief is not in sight — from 2013 to 2014, housing prices rose 13-16% while incomes rose only 4.4%.

 

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