The city of Palo Alto in Silicon Valley is considering subsidizing housing for those who need the help most: the wealthiest 3% of Americans, the San Francisco Chronicle reports. Palo Alto is an incredibly wealthy town—the median family income of $167,000 was more than three times the national median in 2014, and the average cost of a three-bedroom home is currently around $2.18 million. “Prices have just gone through the roof, making it unaffordable for middle-class people, your firefighters, your teachers, and, frankly, some of your doctors,” vice mayor Greg Scharff tells CBS San Francisco.
That's why Scharff proposed subsidizing housing for families that make between $150,000 and $250,000 per year, according to Reuters. The Palo Alto city council voted this week to study Scharff's plan, which he says will subsidize "what is basically middle-class housing" in Palo Alto. The proposal would create 2,000 new housing units set aside for families making between $150,000 and $250,000. It would also call for the construction of tiny "micro" apartments near transit for residents without cars. (Read more Palo Alto stories.)