It looks like the next step in the Amazon HQ2 saga will be for a smaller list of final finalists (five or less) to get their incentive packages approved. So far none of the incentives have gotten officially approved because they are still secret.
Everyone needs to start watching the postings of the public meeting agendas.
I am wondering how today's Amazon announcement of their HQ2 in Long Island city and Northern Virginia will affect real estate market in those areas. Any comments and new opportunities in those markets would be worth looking at.
Winning half of Amazon’s HQ2 is no consolation prize — the news means 25,000 new jobs for the region, and many of them will command salaries on average of $150,000 per year. That salary estimate means a lot of people will be looking for homes that are commensurate with a higher wage.
Of course, the DC Metro area doesn’t have the means to staff all of those jobs, so Amazon will have to move people to the region. So on top of needing homes to match high salaries, the region will also need to find housing for a lot of new residents. And to meet the needs of job growth, we can expect residential real estate growth as well.
It’s also worth noting that a lot of the new hires at Amazon will be millennials, who are far more likely to rent before they buy. Knowing this, expect to see a sizable impact on luxury apartment buildings first. After 12 to 24 months, these new residents will be looking to buy, and that is the point at which the mid-range housing market will feel the most pressure.
For real estate investors, this news means that it might not be a bad idea to invest in multi-family units, as well as holding onto any fix and flip homes as rentals for a couple of years to see what happens to the prices in their investment neighborhood.
Correct! Now that the dust is settled. I have been looking for properties in the area. I am from the Bay Area so it took me a bit of research and calling agents over in the DC area to help me. I am already priced out in Arlington, but I am closing a property next week in Alexandria near the airport. This is not my first time purchasing a property remotely, but it has been a long time since. And the last remote purchase I did was somewhere I went to school (Chicago), so at least I had some knowledge of the area.
I hope it is a good investment. I made a cash offer to beat the competition. It's a small one-bedroom unit but super close to the future National Landing. If this works well, I would love to get a multiple family property in the area also.
In addition, if you know any good lender that can give me a good cash-out refinance rate, please let me know.
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