Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ A year later after Amazon's HQ2 announcement, here's what happened to Northern Virginia home prices

A year later after Amazon's HQ2 announcement, here's what happened to Northern Virginia home prices

It's official: Northern Virginia has felt the effect of the Amazon.

A year ago, Amazon

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announced plans to build a pair of new plants as part of the so-called HQ2 project: One in New York and another in Virginia. But months after that announcement, Amazon decided not to move forward with its headquarters in the Big Apple, leaving the region around Arlington, Washington, as HQ2's only home.

In Virginia, home prices remain sharply higher, while prices in New York fall after Amazon abandoned plans for a large campus there. Initially, home prices in Northern Virginia rose 21

% after Amazon announced it. A year later, the average listing price in Arlington County is $ 863,000 as of October 2019, up 33% from a year ago, according to Realtor.com. Meanwhile, the average selling price in Manhattan has fallen by 15% to $ 1.04 million.

Amazon's plans to build its second headquarters have sparked intense criticism and protest among affordable housing advocates, who worried that the project would exacerbate existing residents' ability to find a place to live.

Researchers cited Amazon's original Seattle home as a cautionary tale: House prices there have risen nearly 73% over the past five years when the technology company announced its plans for HQ2.

There may be cause for concern in Northern Virginia, according to a new analysis from Realtor.com. In both New York and Northern Virginia, the announcement of HQ2 has led to significant changes in home sales, as investors and future HQ2 employees have taken ownership in anticipation of Amazon's arrival.

(Realtor.com is managed by News Corp

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a subsidiary of Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.

Read more: Apple, Facebook, Google and Amazon are investing billions of dollars in affordable housing – but that money may be too little, too late. there is a large shortage of housing throughout. According to the report, Northern Virginia as people who want to make money from the arrival of the Amazon, buying housing. In the 14 counties in Northern Virginia, the number of homes for sale actively decreased by 26% over the last year.

In Arlington County, the numbering is half what they were before Amazon entered the picture. The number of homes sold in Arlington has halved. The homes are now for sale in about 28 days, which is 10 days shorter than the period last recorded a year ago.

See also: Here's what would get Virginia away from the Amazon HQ2 deal

"The impact of a company expansion in suburban Washington, DC diverges along home ownership lines, with homeowners are experiencing noticeable returns on equity, and buyers are feeling the sting at higher prices, "says George Ratiu, senior economist at Realtor.com.

" Homeowners and investors are holding back their sales, expecting prices will continue to increase even more, which has increased and inventory deficits in the area and further increased home prices by testing the area's borders for what buyers are willing to pay, "said Ratiu.

An Amazon spokesman said allegations of HQ2's impact on home prices are hypothetical and that the impact in Arlington is likely to be driven by speculative sellers and buyers, and the spokesman also claims that it is inaccurate to assume a direct link between Amazon's rentals and home prices in Arlington and Seattle. Seattle's prices drop significantly, even as Amazon and other local employers grow, she said.

Meanwhile, Amazon responded to the affordable crisis in Northern Virginia by donating $ 5 million to a nonprofit entrepreneur and $ 3 million to a community foundation at Homelessness.

See also: Here's Amazon's HQ2 to cost taxpayers in New York

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