Effect of Amazon HQ2 on Dallas housing explored

February 9, 2018 by  

Since nothing happens in a vacuum, a survey exploring the effects of being chosen as the site for Amazon’s second headquarters (HQ2) will have on the housing market in the 17 finalist cities has been created by a real estate investment firm.

The projected change in demand for single-family homes in the selected city varies considerably from city to city. For Dallas, one of two Texas cities on the finalist list, Amherst Capital Management LLC projects only a 4% increase. In Austin, meanwhile, the uptick in housing demand would be 13%.

It is estimated that HQ2 will bring around 50,000 jobs to the chosen city, spread over a five-year period. The effect this will have on housing is depend on the vitality and size of the city. Regardless of the location chosen, Amazon’s $5bn project is unlikely to prompt the placing of an order for banner printing in the immediate future, as it will take 15 to 17 years to complete.

Two bids were placed for the New York City region and three for the Washington, D.C. metro area, which brings the total bids still in the running at 20 scattered among 17 metro areas. The Seattle-based online retailer originally received applications from 238 communities in North America.

The survey results see the Pittsburgh area receiving the largest increase in demand at 27% and the smallest change occurring in New York City at 3%.