Google has announced it will invest $1 billion toward the development of 15,000 new homes in the San Francisco Bay Area with the aim of tackling its housing shortage and affordability crisis in the region... that it kind of helped create.

Google’s chief executive Sundar Pichai made the announcement this week, as the tech giant plans to roll out the billion-dollar pledge back where it all began, the Bay Area.

Starting out there more than 20 years ago, Google is one of the Bay Area’s largest employers. And one of the region’s standout issues today is housing.

The rise of tech hubs, such as Silicon Valley, is why many believe the area is home to some of the world’s most expensive real estate.

“The lack of new supply, combined with the rising cost of living, has seen a severe shortage of affordable housing options for long-time middle and low-income residents,” Pichai said.

“Solving a big issue like the housing shortage will take collaboration across business, government and community organisations, and we look forward to working alongside others to make the Bay Area a place where everyone who lives here can thrive.”