MReport March 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 51 of 70

50 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA How Amazon HQ2 Impacts Housing No matter which city it chooses, Amazon's second headquarters is bound to drive up rent and home prices. Here's why… I n a recent announcement, Amazon released its candi- date list of cities for its second headquarters location or HQ2. According to Amazon, the direct hiring and investment, construction, and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in addi- tional investment in the surround- ing community. Andthat increase in jobs and investment could bring widespread and lasting economic growth to the surrounding region. In light of this, Apartment List released an analysis to discover how the new Amazon head - quarters will impact the housing market in the metro it moves to. "No matter which city is chosen, the influx of 50,000 high- paid Amazon workers and 66,250 supplementary workers over a 10-year period will put pressure on local housing markets, driving up rent and home prices," the report notes. Apartment List's analysis lever- ages data from the U.S. Census and Bureau of Labor Statistics to determine how much new hous- ing a metro can build, the amount of slack in the housing market, and the impact of an influx of high-wage workers. While all of the metros analyzed would experience rental housing growth from the Amazon HQ2—the difference is in the amount of growth that could occur. The report projects that Raleigh, North Carolina, Columbus, Ohio, Indianapolis, Pittsburgh and Nashville, Tennessee, would ex- perience the biggest rent increases, with additional annual rent growth between 1.2 percent and 2 percent. Meanwhile, the impact would be smaller in metros with large hous- ing stocks such as Washington, D.C., Los Angeles, Dallas and New York, with additional annual rent growth projected at or below 0.5 percent a year. "In Seattle, home of the company's current headquarters, the influx of high-paid Amazon employees has coincided with rent increases that outpace almost all other U.S. cities and the fast- est growth rate in home prices nationwide," the report added. With so much change in the rental housing space, it is cru- cial for investors and housing professionals to stay up-to-date on the latest market trends—the single-family rental market is an investment landscape that offers an opportunity for many in a marketplace that has often been misunderstood. Navigating this dynamic terrain takes careful planning and stra - tegic partnerships. The 2018 Five Star Single-Family Rental Summit provides an important conduit for SFR leaders to have the important conversations that will push this industry forward. The 2018 Five Star Single-Family Rental Summit begins March 19 and continues through March 21 at the Renaissance Nashville Hotel in Nashville, Tennessee, to discuss the investment opportunities abound in this expanding market.

Articles in this issue

Archives of this issue

view archives of TheMReport - MReport March 2018