• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Tech

Facebook Gives Employees Big Money to Move Closer to Work

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
December 17, 2015, 7:57 PM ET
Top Tech CEO's Speak At TechCrunch
SAN FRANCISCO, CA - SEPTEMBER 11: Facebook founder and CEO Mark Zuckerberg speaks during the 2013 TechCrunch Disrupt conference on September 11, 2013 in San Francisco, California. The TechCruch Disrupt Conference runs through September 11. (Photo by Justin Sullivan/Getty Images)Justin Sullivan--Getty Images
Add Fortune on Google for similar content.

(Reuters) – Facebook is offering employees at its Silicon Valley headquarters at least $10,000 to move closer to the office, a reflection of the challenges many tech companies face in the increasingly expensive and congested San Francisco Bay area.

To qualify for the payment, which the social networking firm started offering in the last 12 months, according to current and former Facebook workers, employees must buy or rent a home within 10 miles (16 km) of the Facebook campus at One Hacker Way, a desolate strip of road overlooking a marsh about 30 miles (48 km) south of San Francisco.

Some Facebook employees with families to support could earn a one-off payment of $15,000 or more for housing costs.

Facebook‘s efforts, along with similar programs at some other technology companies including investment management technology company Addepar, data company Palantir and software firm SalesforceIQ, a unit of Salesforce.com (CRM), could help ease a major source of tension in San Francisco: an influx of young, wealthy tech workers who commute to Silicon Valley on private buses and often displace lower-income residents.

But Silicon Valley has a housing affordability crisis of its own, and if Facebook‘s program gains traction it could further accelerate the gentrification of nearby communities, especially the low-income city of East Palo Alto.

“A lot of local families are going to get hurt,” said John Liotti, chief executive officer of East Palo Alto community advocacy group Able Works.

Facebook (FB) says the program is not about social engineering. “Our benefits at Facebook are designed to support our employees and the people who matter most to them at all stages of life,” a Facebook spokesman said.

Cynics suggest the company might be looking to encourage people to spend more time in the office while also cutting the cost of its luxury bus service, whose drivers recently unionized.

For Mark Shim, an engineer who had worked at Addepar, living across the street from the Mountain View-based company earned him a $300-a-month bonus. But the money, which was a taxed benefit, wasn’t the reason behind his housing decision.

“For me, it wasn’t financially driven as my rent has gone up more than 60 percent since I moved to Mountain View and the stipend doesn’t keep up with the rent spikes in the area,” said Shim, who has since joined another company.

“If you live closer to work you are less worried about leaving at an exact time, and if you’re in the middle of solving a cool problem, you’ll spend the extra time to finish that up.”

Lissa Minkin, vice president of people at Addepar, said the perk was designed to help employees spend more time on personal interests or with their families.

“Not having a long commute makes a huge positive impact on maintaining a healthy work-life balance,” she said.

Tech workers say the commute is getting worse. What would have been a one-hour commute each way three years ago has stretched to 90 minutes or more as the tech economy has boomed and more cars hit the road.

San Francisco-area drivers spend more time in gridlock than those of any city other than Washington, D.C., and Los Angeles, according to traffic data service Inrix.

Still, plenty of young techies are willing to endure it. Take Nilesh Patel, a single technology worker who commutes from San Francisco to a large company almost 40 miles (64 km) away so he can cultivate his rich social life in the city.

“I didn’t want to move into one of those depressing bachelor complexes,” he said about the generic Silicon Valley apartment buildings that often house people like him.

Even for those who might consider a more suburban lifestyle, $10,000 doesn’t necessarily go very far in a city like Menlo Park, where the average rental is $3,600 a month, according to data from online real estate company Trulia.

And moving south won’t provide an escape from the resentment tech workers have engendered in San Francisco neighborhoods like the Mission, where community activists protesting gentrification have blockaded tech-company buses.

In East Palo Alto, once a crime-ridden city that provided an element of gritty flair amid the bland office parks and strip malls that dominate much of Silicon Valley, the recent influx of tech money has brought plenty of benefits.

Crime, including robbery, auto theft and rape, has declined over the years, according to city data. New businesses like the city’s only full-fledged grocery store have opened, and many new arrivals are trying to help by tutoring kids and donating to local causes, said Liotti.

But the newcomers, who locals call “los Facebuqueros” regardless of where they work, have also contributed to increasing evictions and sky-rocketing rents.

“We’re dealing with a huge displacement of lower-income individuals,” said Tom Myers, executive director of the Community Services Agency in Mountain View, which this month passed ordinances to try to take pressure off lower-income renters.

There’s also the chance that the housing incentives backfire.

Old hands remember a time when Facebook offered a few hundred dollars for employees who lived within a few blocks of its old offices in Palo Alto. Landlords got wind of the situation and quickly raised rents to match, they say.

For more about Facebook, watch this Fortune video:

About the Author
By Reuters
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
NewslettersCIO Intelligence
How foodservice giant Sodexo is embracing AI and robotics to reshape the kitchen
By John KellJuly 1, 2026
5 hours ago
Anthropic CEO Dario Amodei
AIAnthropic
Anthropic’s AI models are back online after a two-week government standoff—settling the company and administration into a fragile truce
By Tristan BoveJuly 1, 2026
6 hours ago
Nikesh Arora, chief executive officer at Palo Alto Networks
SuccessJobs
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
7 hours ago
Current price of Ethereum for July 1, 2026
Personal FinanceEthereum
Current price of Ethereum for July 1, 2026
By Joseph HostetlerJuly 1, 2026
9 hours ago
In this photo illustration, a Cisco logo is displayed on a smartphone with Artificial Intellingence (AI) symbols in the background.
AICFO Daily
Cisco is rolling out AI agents to every single one of its 90,000 employees
By Sheryl EstradaJuly 1, 2026
9 hours ago
senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
11 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
15 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
13 hours ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.