A couple of weeks ago Amazon confirmed that they will be opening their second headquarters in our very own backyard, Crystal City. This is big news for the DC area and more specifically for the housing market. We are excited to welcome the largest retail company in the world to the DMV and see what changes it brings!
Based on what we know, not all 25,000 employees will be moving here at once. They will slowly be transferred over the course of 10 years beginning in 2019. This will allow our area to adjust and Arlington county, and surrounding counties, to prepare for this massive influx in population.
In the last few years, we’ve seen a 5-7% increase in home prices year over year. So how will Amazon’s arrival change housing market in the DMV or will it have any impact at all? The average price point in Northern VA is $530K. Based on the salary averages that have been released from Amazon, we foresee this being a popular price point for future Amazon home buyers. This may cause a shortage in inventory in the future and shift the housing market trends that we are currently used to – summer and spring being seller’s markets and fall and winter being buyer’s markets. In other words the market will stay a seller’s market for longer making home buying more competitive than ever.
Something else to consider is that Amazon employees will want to get to know the area before they purchase. Investors will likely purchase rental properties in the Crystal City and Pentagon City areas understanding that most of the Amazon employees will rent first. If you’ve thought about purchasing a rental property as an investment but aren’t sure where to start, please reach out! You do not need to be an extremely savvy investor to take advantage of this upcoming surge in population.
We don’t have all the answers just yet, but are excited about the many opportunities that such a large organization can bring to the area. If you’re curious on what Amazon’s move will specifically do to your homes value, send us an email or give us a call!
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