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Apple’s New Expansion and the Local Impact

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Apple’s New Expansion and the Local Impact
The Silicon Valley is benefiting from the technological and economic booms brought by the high tech companies. Many of them are seeking to increase their presence in the area by acquiring additional land and building out new campus space to accommodate future growth. While the creation of new well-paid high tech jobs will definitely help to keep skilled work force and well paid jobs local, it will also add more value to the already expensive real estate market.
On September 25th, 2015, Apple has successfully secured a major purchase of 27 acres of land in North of San Jose. This acquisition followed the 40 acres purchase last month in the same area by Apple. The company plans to build out approximately 4 millions square feet of offices and to employ 18,000 workers at these sites. Joining Apple’s active expanding footprints, Samsung opened a 1.1 millions square feet office complex last week with a plan to relocate its 2,000 workers there. Google is also join the game by seeking more space to add to its head quarter campus in Mountain View.
The real estate market in San Jose, Silicon Valley is definitely one of the hottest markets in the country. Data from California Realtor Association shows less than 50% of the household in San Jose can afford to purchase home of median value in the valley. The creation of new high paying jobs by tech companies is a welcome news to the city. But housing prices in the immediate area, in the next few years, will probably mirror the upturn pattern of the cities of Palo Alto and Mountain View when Facebook and Google campus open for business. The rise could range from 25% to 50% of the current home value, putting home ownership even more out of reach for ordinary working class families in San Jose.
As a result, more and more people are moving to the surrounding suburbs to find

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