Facebook pledges $1 billion to address California housing crisis

As a housing shortage afflicts portions of California, Facebook plans to spend $1 billion to build up to 20,000 new, affordable housing units, the Silicon Valley-based social media giant announced on Tuesday.

Why it matters: Facebook is the third tech company to make a financial commitment to help fix the housing crisis. The problem is at least in part attributed to the growth of the technology industry and the resulting influx of workers. Google, too, made a $1 billion Bay Area pledge in June, and Microsoft put $500 million toward building affordable housing in Seattle in January.

Details: $250 million of Facebook's gift will go toward "mixed-income housing on excess state-owned land in communities where housing is scarce," according to Facebook. Other funding will target the San Fransisco Bay Area, Menlo Park, and San Mateo and Santa Clara counties.

• Reality check: The state of California has a shortage of more than 1 million affordable rental units, and funding to fill in the gap is behind what's required, the New York Times reports.