What if a Fla. city secured Amazon’s 2nd HQ?
ORLANDO, Fla. – Oct. 23, 2017 – About 100 cities across the country have submitted final bids to be the home of Amazon's second headquarters, known as HQ2, as municipal leaders offered reasons why their community should be Amazon's top pick.
However, it won't be all good news for the metro Amazon ultimately selects in 2018, especially when it comes to housing. HQ2 will bring with it up to 50,000 new jobs, which will undoubtedly put greater upward pressure on already sky-high rents and further exacerbate housing shortages.
Website ApartmentList.com conducted an analysis of the potential impact on the rental market in 15 metros contending for HQ2. According to that analysis, HQ2 would spur an additional yearly rent increase of up to 2 percent beyond the normal rent hikes each city could expect to see.
ApartmentList.com analyzed the data to determine how much housing each market could build and the overall impact to the city from an influx of high-wage earners. The predictions also factored in additional job growth from supplementary workers in industries that could support HQ2 (which would bring an estimated 66,250 more residents over the next decade).
"Amazon will increase rents in any metro it chooses for its HQ2, but certain metros are more sensitive to its impacts than others, with rents expected to rise an additional 0.3 percent to 2 percent a year in cities across the country," ApartmentList.com reports.
"Metros with larger populations, more vacant units, the ability to ramp up construction, and higher median incomes will see less of an impact. Renters in cities that are already experiencing rapid rent increases, such as Denver and Austin, should expect even faster rent growth."
Current homeowners should receive a boost in their property values if Amazon comes to town, the study authors said – but "renters and those hoping to purchase homes will feel the impact more severely."
Source: "Prime Markup: How Much Would Amazon HQ2 Drive Up Rents?" Apartment List (Oct. 13, 2017)
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