Ever since Amazon announced plans to construct a new headquarters somewhere in the United States, which will employ tens of thousands of people, many cities have essentially been tripping over themselves to win the contract.
The biggest thing at stake is approximately 50,000 workers with an annual salary that tops over $100,000. These workers would be moving to the city in which the new headquarters resides over the next 10 to 15 years. Furthermore, since Amazon has also pledged to invest approximately $5 billion into both the construction and operation of its brand new facility, this will eventually transform a smaller city into a sprawling metropolis, as well as transform the housing market of the same area.
As builders begin to race to construct apartment and condo towers near the new Amazon headquarters, all of which would be filled with multiple amenities, the prices of rentals and homes are expected to rise as well. Furthermore, there is also expected to be an increase in the construction of single-family suburban homes and master-planned communities.
One big piece of the puzzle is exactly where the workers of the new headquarters will end up living. Stock is generally taken of housing that’s located within a 70-mile radius of the new site that a company is constructing. This is where officials look at the homes that currently exist, as well as what types of buildings are able to be repurposed and land supply that can be utilized to construct condo and rental towers, as well as single-family suburban homes.
Should Amazon decide to construct their new headquarters on the outskirts of a city, the end result could be the creation of a “second-city-type area.”
Regardless of where Amazon’s new headquarters will go, the apartment market will likely end up spiking as well, as many younger workers of the company will likely prefer to rent inside the center of the city, while older workers will tend to want to invest in a single-family suburban home.
The downside, however, is that constructing new housing could end up taking longer as opposed to constructing Amazon’s new headquarters. This is because essentially tens of thousands of retrofitted housing units will need to be created in such a short amount of time. Furthermore, affordability will end up getting worse, traffic will increase, and schools will become overcrowded.
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