WHAT THE COMPANY’S MOVE TO NATIONAL LANDING MEANS FOR DC-AREA HOUSING
Since tech giant Amazon announced it will open its second headquarters in National Landing (an area of Arlington, Virginia), real estate in the region has been buzzing. With a plan to hire 25,000 people over the next 10 to 12 years, Amazon’s move to the area will undoubtedly cause a shakeup for the already bustling neighborhood thanks to its proximity to Washington, DC. Here is how the real estate market is projected to respond and how buyers and sellers can be best prepared for the changes.
INVENTORY
More jobs means more residents, and more residents means a larger number of people looking for somewhere to live in a shrinking pool of real estate inventory. While Amazon only plans to hire 400 employees before the end of 2019 and between 1,000 and 1,500 employees in subsequent years, the increase is substantial for an area that’s already experiencing shortages due to the popularity of Arlington and the surrounding Northern Virginia neighborhoods for those working in and around DC. New buyers and renters, as well as longtime residents, are snatching up inventory while they can, motivated by Amazon’s move to the area and the projected increase in the desirability of living near HQ2.
PRICE
When inventory is low, prices tend to skyrocket as the market shifts to favor sellers. Buyers are motivated and willing to pay more if it means securing a place in a highly sought-after neighborhood. Data from MarketStats shows a steady increase in median sale price since the Amazon announcement in November 2018, but it wasn’t until the summer of 2019 that prices spiked, which could be attributed to the anticipated opening of the facility in the fall.
Speculators are on the move, approaching local homeowners with inquiries and potential offers, and many have responded by not listing their homes, holding on to properties in an attempt to keep sale and rent prices from becoming unmanageable. While price increases across the board and over time are good news for property values and those looking to sell, affordable housing for people who grew up in Arlington or have called it home for years also becomes jeopardized.
THE FUTURE
While it is difficult to predict what Amazon’s HQ2 means for the future of Arlington and DC-area real estate, there are certain trends in line with a large corporation moving into an already popular city suburb that we can expect to see in some form. Rents will likely increase, restaurants, coffee shops and stores will move into the area, home prices will go up, and development will move in.
The location of the headquarters in proximity to public transportation is also expected to be key and could lead to big growth in surrounding areas. Because the area is situated along the Yellow Line of the Washington Metro System, communities like Shaw and Columbia Heights could gain more interest. Employees will likely be attracted to neighborhoods along this line in order for a convenient commute to work.
One thing is for certain: these new headquarters are sure to have a big impact on the area. But as for the bottom line? Only time will tell.
Are you looking to purchase or sell a property near Amazon HQ2? If you’re interested in buying or selling a home in DC or would like to learn more about DC-area real estate, don’t hesitate to contact us today. It would be our pleasure to guide you through the process.