If Amazon brings its massive second headquarters and the expected 50,000 jobs to Dallas, the impact on the local residential real estate market may not be as drastic as you’d expect.
A study by Owners.com analyzed the effect that HQ2 could have on home prices in each of Amazon’s (Nasdaq: AMZN) finalist cities. To compile the report, it looked at the potential impact on income, employment and number of households in each city.
Dallas, which has a median home value of $172,500, according to the U.S. Census and Data USA, could see home prices rise by 2.7 percent. While an influx of 50,000 employees would certainly create an increased demand for housing and put pressure on pricing, Owners.com noted that the city could quickly adapt because it has fewer delays in the housing permitting process. That would allow developers to quickly bring new homes online.
Smaller cities on the list, like Indianapolis; Nashville, Tennessee; Raleigh, North Carolina; and Pittsburgh could see a much bigger impact on home values because their size makes them less able to absorb the new employees. However, they tend to have lower median home prices, so even with 50,000 new residences, home prices may remain affordable compared to other parts of the country.
On the other end of the spectrum are larger cities like New York, Chicago and Los Angeles, which are better suited to absorb large amounts of new residents. However, their home prices, which are already high, could increase further around an HQ2 site, Owners.com noted.
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