Google Will Buy Modular Homes to Address Housing Crunch Builder 14 June 2017
Tech giant Google thinks it has a solution to the high cost of housing around its Silicon Valley HQ: Modular. The Wall Street Journal reports: Soaring home prices and apartment rents in Silicon Valley have become a growing headache for technology titans. Google owner Alphabet Inc. is taking a step toward addressing the issue.
The Mountain View, Calif., company is finalizing an order to buy 300 apartment units from Factory OS, a modular-home startup headed by Rick Holliday (Individual Major, '75; M.C.P, '77), in a building likely to serve as short-term housing for Google employees, according to executives from both companies.
The expected value of the deal is $25 million to $30 million, according to Rick Holliday, founder and chief executive of Factory OS. It would be the first order for the company.
Modular-building technology, essentially factory-built homes that are pieced together onsite, could help reduce the cost of construction in the Bay Area by 20% to 50%, experts said.