Amazon just unveiled official plans for its HQ2 location in the Crystal City neighborhood of Arlington, VA on November 13th, but we’ve already seen multiple home sellers in the area raising their prices in reaction to Amazon’s press conference.
Here’s our prediction for how this will impact the Arlington real estate market: Housing supply in Arlington to continue to tighten, and home prices will steeply increase over the next five to seven years due to the economic effects of Amazon’s new headquarters in Crystal City.
If you’re thinking about buying a home in Arlington anytime in the next few years, we don’t recommend waiting.
In Seattle, home of Amazon’s first headquarters, housing prices have increased 15% since last year and 93% since 2012. We retrieved these statistics from the Northwest Multiple Listing Service.
Over 25,000 new high-paying jobs incoming
Amazon begins hiring for their new headquarters in Crystal City (nicknamed National Landing) in 2019. Their presence in Arlington will directly create over 25,000 jobs with an average income of over $100,000.
These six-figure jobs will be filled by an influx of new Amazon recruits from all over the country. It will also increase demand on the Arlington housing market and increase prices of what homes remain, as relocating home buyers seek to put down roots in the area.
That figure doesn’t even include the “ripple effect” jobs that will be created by increased demand for health care, restaurants, entertainment, and retail. Plans are already in place for a Central District shopping center including a grocery store (likely the Amazon-owned Whole Foods) and Alamo theater. In all, the shopping center will add 84,000 square feet of street-facing retail. There’s a reason that local economic officials have been using the word “historic” to describe Amazon’s presence here. This is likely to be transformative.
Interested in buying a home before the first wave of Amazon relocation buyers hits? Call us at 571-210-6762 or ask us anything at [email protected].