What Will Real Estate Look Like If Amazon Chose New York City for Its HQ2?
What Will Real Estate Look Like If Amazon Chose
for Its HQ2?
Renters and homeowners are
likely to see some changes in the
very near future if Amazon
decides to select their city for its
second headquarters in the
Amazon accepted proposals from cities all
across the country after they announced in
September that they were actively seeking cities
to host the second headquarters. They did have
a short list of limitations requiring the metro area
to be home to at least 1 million people, and it
must have an international airport with constant
access to flights back to Seattle.
Possible contenders include Boston, Newark,
Baltimore, and New York City. Wherever
Amazon does decide to locate HQ2, home
prices are going to surge in the area. Look at
what happened to Seattle when Amazon made
their headquarters there seven years ago. Rent
for homes in the area surged by 47 percent
and home prices for buyers a whopping 83
percent, according to the popular real estate
HQ2 will also draw other
businesses into the area, further
limiting space available and
increasing demand for real estate.
Realtor.com chief analyst Danielle
Hale predicts that the impact on
the housing market will largely
depend on the flexibility of the
industry. Here are three likely
changes the city with the winning
bid will see.
Landlords capitalize on rents when
cities expand and businesses enter.
Renters may struggle to afford their
homes if landlords decide to
increase rent due to demand. The
safest option for renting is probably
to wait it out and see how things
turn out. A prolonged lease can also
provide additional security because
it locks the rent amount in for a
Once Amazon announces where
they’re going, it’s a wise decision for
renters who are considering
homeownership to take the leap and
go for it. Rates are low, and the market
is stable, making the purchase a
valuable investment for the future.
Examine options such as down
payment assistance to make it possible
to buy sooner rather than later.
Current homeowners will see the value
of their homes rise if HQ2 locates
nearby. It will allow owners to build
equity in their homes and consider
refinancing for a more favorable rate
which can be detrimental if property
taxes increase or the cost of living
increases, but it’s necessary to evaluate
the entire situation before deciding to
move from the area.
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