BrokerPulse

RealTrends Q32021 BrokerPulse sees brokers still optimistic about the market, wary of competition and wondering when inventory will rise.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Knock.com’s Sean Black on the transaction revolution

Real estate is on its third revolution, from the digital revolution of the early 2000s to the information revolution kicked off by Trulia and Zillow to today's transaction revolution.

Newsletter

The RealTrends BrokerSource and HousingWire OpenHouse newsletters deliver twice weekly information on trends, strategies, analysis, people, and news shaping the real estate industry.

The Amazon Effect: New York and Virginia Locations for HQ2

Today, Amazon officials announced their final selection for the location of their second headquarters. In a change to the original plan, Amazon decided to split the location of its new headquarters between two cities, and chose New York and Arlington, Va. Also to note, Amazon announced Nashville will be home to a new Center of Excellence location for its operations business. This hub is responsible for the company’s customer fulfillment, transportation, supply chain and other activities. It is projected that this addition will create approximately 5,000 new jobs.

Since January, when Amazon announced it had narrowed down the list of North American cities to only 20 locations in consideration to host its second headquarters, CoreLogic has been carefully considering what might put one city above the rest. Researchers initially reported in this blog: Will Amazon Consider Home Price Trends in Their Quest to Find a Second HQ Location?, on the home price changes year-over-year for 19 of the 20 cities (CoreLogic does not follow home price data for Toronto, Canada). Several months later, CoreLogic asked all of the team members from the Office of the Chief Economist to opine on a city they thought might have the edge over the other finalists on Podcast – CoreLogic Economists Consider Amazon HQ2 Final Cities. Coincidentally, but not surprisingly, Dr. Frank Nothaft, chief economist for CoreLogic, was correct in his prediction that Amazon would likely choose the Washington, D.C., area. Additionally and most recently, Shu Chen wrote a blog considering Housing Supply and Prices for Amazon HQ2 Finalist Cities. Looking back on CoreLogic’s research, it appears that the large share of tech workers, access to airports and public transportation, and lobbying may have been among the factors in the choice of HQ2 site locations.

Employees moving to the area will find the following housing market conditions:

  • Price increase of 1.7 percent in New York City and 3.2 percent in Washington, DC metro areas over the past year.
  • Single-family rent increases of 2.5 percent in New York City and 2.3 percent in Washington, D.C., metro areas over the past year.
  • For sale housing supply of five months in New York City and three months in Washington, D.C., metro areas, compared with 3.5 months nationwide.
  • Median home prices of $470,000 in New York City and $410,000 in Washington, DC metro areas, about double that of the national median home price of $225,000.

Amazon has already indicated that it will take several years to complete the campus and updates to the surrounding areas for these new locations, but now a different debate may emerge. Will home prices in New York and Northern Virginia spike? Will there be enough housing supply for the new employees? The influx of employees is bound to bring change to the cities and neighboring cities. Infrastructure will most definitely be impacted, and other socioeconomic fluctuations may occur.

Most Popular Articles

Where is the housing market headed?

Rising incomes, low interest rates and all other factors, including the balance between families looking for housing and the availability of housing, point towards a continuation of the strong housing market of the last 15 to 18 months.

Oct 18, 2021 By

Latest Articles

Existing-home sales rebound in September

Existing-home sales rose 7% in September after falling in August. But year-over-year, inventory of unsold homes decreased 13% last month to 1.27 million.

Oct 21, 2021 By