By now, the shock that Amazon is splitting its new headquarters into two— yes, two! —separate locations has subsided. Congrats, New York and DC! But as the fairy dust settles, it’s time for a reality check: Just a couple of months after the tech giant’s long-awaited announcement, there are some early signs of the real impact this will have on housing in the two urban markets that won the prize.
So far, it’s not quite playing out the way some pundits had predicted.
Without question, real estate agents in the HQ2 neighborhoods—Long Island City, across the river from Manhattan, and Crystal City, VA, a hop, skip, and a jump away from the Pentagon —are suddenly very busy. Investors are circling, and prices are swelling in anticipation of up to 25,000 jobs with average salaries of $150,000 moving into each location. But those hoping to see home and rent prices double overnight—or even this year —will certainly be disappointed.
People thought prices would double in a year? They are HUGE cities that already have a lot of high paying jobs. The impact will be much smaller than if it was in a smaller city.
I was never interested in the HQ2 real estate. It will disappoint.
Northeast is losing population, Amazon won’t be enough to reserve the trend. Too many cities around DC and many of them are too loose on home building.
It’s the government regulations that makes housing price rise. East coast local governments are still not as liberal as west coast, I will not make any investment in moderate or conservative places anymore, only liberal government that marries with industry. A place full of rich liberals is the best for appreciation.
Most likely bad investment because every existing homeowners would raise prices when they want to sell, but rent won’t go up that much because rich techies buy, the same old hacks rent. Cash flows would be very bad. Appreciation uncertain.