Ignite FB Tracking PixelVia WUSA9: Amazon's HQ2 is officially coming. What's it going to do to your rent? Your home value? - Executive Housing Consultants, Inc
Via WUSA9: Amazon's HQ2 is officially coming. What's it going to do to your rent? Your home value?

by Executive Housing Consultants, Inc 11/14/2018


Author: Jordan Fischer

Published: 5:15 PM EST November 13, 2018

Updated: 8:28 PM EST November 13, 2018

WASHINGTON, D.C. -- Amazon’s HQ2 – or at least half of it – is coming to the Washington DC Metro Area and bringing with it as many as 25,000 jobs. So what’s that going to do to your rent?

It’s hard to say. DC is already among the most expensive places to live in the country, and the relatively high Amazon salaries that were so attractive to other cities vying for the project aren’t out of place in DC.

Rents within the Crystal City – or National Landing, as Amazon is calling it – area and those along nearby metro lines are likely to see the largest jumps. On the whole, though, researchers for the online real estate database Zillow expect HQ2 to have a relatively minimal impact on rents – adding potentially as little as .3 percentage points to the annual increase. That being said, rent in several DC ZIP Codes has already increased by as much as 17 percent over the past five years, and adding a new Amazon HQ isn't going to do anything to slow that down.

If historical housing data from Seattle is any indicator, though, DC homeowners are the ones who are in for major increases. The ~40,000 jobs Amazon have directly brought to the Seattle area has corresponded with the near-doubling of house prices in the city.

Housing prices aren’t likely to double in DC – partly because, again, it’s already so expensive to live in the area. And the original 50,000 jobs HQ2 promised have since been halved to 25,000. That’s still enough for every city in the country to compete for them, but it’s less than the roughly 34,000 jobs the DC Metro added between March 2017 and March 2018, according to stats released by the DC Department of Employment Services.

That being said, we took a shot at estimating what the “Amazon Effect” might be on the Metro Area – assuming, for this particular estimate, that housing prices respond proportionally to how they did in Seattle. Given that set of assumptions, the region could be looking at an estimated increase of 50.7% in housing prices over the next five years.

We’ve broken down the data below in an interactive map. Click on each ZIP Code in the DC Metro Area to see information about current and projected prices for rent and housing (We should note again that this is just a model of one possible reaction to HQ2 coming to town, and not a forecast!):

Click this link to see the interactive map!

https://www.wusa9.com/article/news/local/amazons-hq2-is-officially-coming-whats-it-going-to-do-to-your-rent-your-home-value/65-614219286

About the Author

Author
Executive Housing Consultants, Inc
Executive Housing Consultants, Inc. is the residential real estate company specializing in the rental and management of luxury properties in the Washington Metro area. This includes Chevy Chase, Bethesda, Potomac and North Potomac, Maryland, Upper Northwest Washington, DC, and McLean, Arlington and Great Falls, Virginia. Executive Housing Consultants was founded in 1983 to provide exceptional service and management of high-end rental housing. Our founders, Libbie Mathes and Rochelle Scissors, traveled the world and were disappointed with their experiences with the leasing and management of their homes in the Washington area while abroad. They recognized the need for a well-run, property management company. Libbie and Rochelle believed they could manage and run a rental real estate firm more efficiently than any of the companies they had dealt with during their time away. They also discovered the need for quality temporary housing in Washington. So they created our short-term furnished portfolio to serve those visiting Washington for a temporary stay and those relocating to the area that need a furnished property while they looked for a permanent housing solution. In 1997, Brian Ridgway took over Executive Housing Consultants and has continued our strong reputation of offering high-quality, upscale temporary and long-term rental real estate. Mission Statement Executive Housing Consultants Inc. is a leader in providing luxury temporary housing to our clients in the Washington Metro area. Our pledge is to offer exceptional housing and superior service while maintaining the highest level of integrity and strict ethical values. In addition, we promise to: Be loyal to our clients. Protect our clients’ interests in all matters. Promptly and diligently respond to our clients’ needs and the needs of their properties. Remain the experts in our industry. Why Are We Unique? We are truly the experts in this industry. Leasing and managing rental properties in the Washington Metro area is our niche; it is ALL we do. We offer unparalleled expertise, service, and value to our clients. In addition: Our contact and referral network is vast. We set the standard for world-class service in our industry. We are your link to success, whatever your residential rental needs maybe. Our clients own some of the most valuable real estate in the Metropolitan Washington, D.C. area. Contact Executive Housing Consultants Inc. for more info! Phone: (301)951-4111 | Email: [email protected]