Housing!
So, we now know where the Amazon HQ2/3 is going to go – Washington D.C. and Queens, NY. However, most of the stories I am seeing surround the conversation of available housing / rent. In response to this I thought I would do some looking into this and hope you get something out of it. My favorite article in response to this comes from CoStar:
Housing situation article – LINK
In short, this article explains the topic of housing in New York and some of the theory used throughout this process.
Rental Rates
The above article peaked my interest so I wanted to see what the year over year residential rates looked like and I came across this from Real Property Management:
Better yet, ApartmentList.com produces another detailed report that shows some areas (Bloomfield in particular) above a 5% rent growth. Here is the details of their study:
Denver Rent Report – Link
I can geek out on this type of information only because I know how much work goes into this type of data, and the information has great implications into the commercial real estate sector. For example, if the cost of living (rent in particular) is driving up higher than the employment wages in a given area it’s easy to see how office buildings and retail settings will be impacted. I know this is one of those “chicken or egg” topics, but I think it’s fun to explore.
Denver is better off without HQ2!
Even though some will see the fact that HQ2 will not be in Denver as a loss for the city, I truly believe this is for the better. In fact, the conversations I have had around this topic highlight the cities need to improve the infrastructure and roads in order to take on such a growth. Therefore, I think a slower pace of growth for the city is more prudent and allows for some of the other needs of growth to keep in alignment in a more stabilized scenario.
In fact, the Denver Business Journal points out that some of the locations that were selected for HQ2 in Colorado would have been will see a higher value in growth:
Higher Home Value – Link