How Amazon Relocation Affects Housing Market

How Amazon Relocation Affects Housing Market In Area

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On How Amazon Relocation Affects Housing Market In Area Was PUBLISHED On February 18th, 2019

Many people often wonder How Amazon Relocation Affects Housing Market.

Alexandra Ocasio-Cortez saw this as a victory but Governor Andrew Cuomo and NYC Mayor Bill de Blasio sharply criticized Ocasio-Cortez and state lawmakers for Amazon pulling out at the last minute .

Incompetent Politicians Blamed For Amazon Changing Plans

Alexandra Ocasio-Cortez does not realize how Amazon Relocation Affects Housing Market and New York’s economy as a whole.

  • She does not realize the damage she and state lawmakers have caused billions of dollars of lost revenue
  • 25,000 to 40,000 high paying jobs were affected
  • Also, the economic impact on housing and business development opportunities are now gone
  • Over 70% of Ocasio-Cortez constituents were in favor of Amazon locating its second headquarters to New York

Many are demanding Alexandria Ocasio-Cortez to resign while others are planning legal proceeding in impeaching AOC out of office. 

Financial Problems Facing New York

New York leads in residents moving out of the state to other states with lower taxes.

  • New York lost over 1.4 million residents exiting their state due to high taxes in the past 10 years
  • The second leading state where residents are leaving their state due to high home prices and higher taxes is California
  • New York sees a shortfall of over $2 billion in taxes
  • The state really needed this economic infusion by Amazon

Governor Cuomo, a far left-wing liberal, attacked and blamed Alexandra Ocasio-Cortez for Amazon changing its plans in locating its second corporate headquarters to New York.

Negotiations With Corporate Giant Amazon And How Amazon Relocation Affects Housing Market

Ocasio-Cortez and state lawmakers were giving opposition to corporate giant Amazon.

  • She and state leaders were playing hardball with Amazon
  • Local and state politicians were expecting a few rounds of negotiations back and forth
  • However, Amazon decided to change its plans and not play games
  • This sudden change of plans by Amazon shocked everyone including Ocasio-Cortez, state Senate leaders, Cuomo, and de Blasio
  • New York politicians are being labeled as national laughing stocks
  • They did not realize the economic impact on How Amazon Relocation Affects Housing Market

New York residents, taxpayers, and businesses are the ones getting hurt due to lawmakers trying to play hardball with a corporate giant. 

List Of Cities Amazon Considered Building Second Headquarters

Amazon narrowed their search to two cities to build their second corporate headquarters:

  • Long Island City, New York
  • Arlington County, Virginia

The top two cities were named this past January out of a national list of 20 cities. Long Island City, New York then came in first place. However, with the opposition of Alexandra Ocasio-Cortez and New York State Senate leaders, Amazon decided to choose Northern Virginia as its city of choice for its headquarters.

Other cities under consideration were the following:

  • Atlanta, Georgia
  • Austin, Texas
  • Boston, Massachusetts
  • Chicago, Illinois
  • Columbus, Ohio
  • Dallas, Texas
  • Denver, Colorado
  • Indianapolis, Indiana
  • Los Angeles, California
  • Miami, Florida
  • Montgomery County, Maryland
  • Nashville, Tennessee
  • Newark, N.J.
  • Philadelphia, Pennsylvania
  • Pittsburgh, Pennsylvania
  • Raleigh, North Carolina
  • Toronto, Canada
  • Washington, D.C.

Only major cities with at least one million people were in the running. Competing cities needed to be near international airports with non-stop flights to its main corporate headquarters to Seattle, Washington.

How Amazon Relocation Affects Housing Market According To Real Estate Experts

Here is How Amazon Relocation Affects Housing Market:

  • Home prices in Seattle, Washington increased by 75%
  • Seattle is Amazon’s corporate headquarters
  • Rent has jumped to 35% in Seattle due to Amazon’s presence

How Amazon Relocation Affects Housing Market In New York

New York already has one of the highest home values in the country.

  • New York also has one of the highest property tax rates in the nation
  • So how Amazon relocation affects housing market, we will never know thanks to Alexandra Ocasio-Cortez and a small group of New York politicians who steered Amazon to Northern Virginia
  • If Amazon located to New York, it would have definitely affected the housing and rental markets like it did to Seattle
  • Larger metropolitan cities historically have been much faster to build to meet demand of new employees migrating to the city and surrounding suburbs

Chances are that many high rise buildings would have been built to meet demand of 25,000 to 40,000 new jobs. New York has over $2.3 billion dollars shortfall of revenues due to residents moving out of state to states with lower taxes.

How Amazon Relocation Affects Housing Market For Renters

Renters in New York would have had a difficult time keeping affordable housing if Amazon would have set up its second headquarters in New York.

  • Demand versus supply factors comes into play
  • With the creation of 25,000 to 40,000 new jobs, the rental market will be in demand

There will be more people trying to rent than there is inventory.

What Ocasio-Cortez And Local Politicians Do Not Know

Maybe Alexandra Ocasio-Cortez and local politicians wanted to impress their constituents but backfired. Many constituents of the newbie congresswoman are furious. Amazon planned on building their New York headquarters in several phases that would have spanned over 15 years. This would have mean a $5 plus billion dollar investment in real estate development and housing according to the The Wall Street Journal reports. By early 2020, Amazon would have had 1 million square feet of office space built as part of the first phase. Homeowners nearby Amazon’s development would of had immediate property appreciation gratification. Median home prices near the Amazon neighborhood is currently priced at $421,000. These homeowners would have seen a sudden jump in housing prices if Amazon were to move in. Homeowners are beyond furious at Alexandra Ocasio-Cortez and their local politicians. Many homeowners already had plans in renting out their homes and buying another home. Now with Amazon changing its plans, these homeowners shot at riches has evaporated overnight.

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