To echo Jeff Bezos—it’s Day 1 for the D.C. metro region and for the newly dubbed “National Landing” neighborhood in Arlington County, Virginia, which was named by Amazon as one of its two HQ2 locations.
Bezos, as you may know, believes every day is Day 1 at Amazon, where, even as a technology behemoth, the company acts like a start-up. It’s an approach that focuses on customers and results and requires effective and quick decision making.
As we begin Day 1 in the greater D.C. region, here are a few of the challenges and opportunities of welcoming Amazon to our backyard.
Moderate home price appreciation expected. Seattle has seen an almost 73 percent increase in home values in the past five years, compared to the 15.5 percent that’s been reported in Arlington County. We expect Amazon’s move will prompt median home prices to rise, albeit at a more moderate pace than what’s occurred in Seattle. While price appreciation benefits existing homeowners, it could exacerbate the affordability challenges facing first-time buyers and renters in the region. Likewise, demand for housing will push higher with the addition of 25,000+ high-paying jobs, and that could stress our already-challenged low-inventory environment (you can see more of the D.C. area current market conditions here).
Added jobs will drive wage growth. As mentioned, Amazon is set to bring over 25,000 jobs, with an average wage of more than $150,000. The Washington metro area already has a healthy job market with low unemployment, and the added Amazon opportunities will further benefit our local economy. Skilled workers are likely to enjoy a spike in wages, as a result of area businesses now facing increased competition for their talent.
Where Amazon leads, others will follow. Amazon’s decision to call Arlington County home may spark other companies’ interest in the D.C. region. Ancillary businesses will follow in support of Amazon’s operations, and we’ll see billions of dollars invested into our economy from our local and state governments, as well as business.
Increased density will affect our infrastructure. Traffic around the D.C. metro already ranks among the country’s worst, and the addition of 25K+ jobs in the D.C. close-in suburbs will add to commute challenges for both drivers and Metro riders. The Commonwealth of Virginia and Arlington County have committed to investing in infrastructure improvements, but those upgrades will take time.
Long & Foster is Here to Help with the HQ2 Move
While some of Amazon’s 25K+ future employees may already live in the greater D.C. area, many will relocate to the market. They’ll need advice on housing prices, commute times, neighborhood amenities, school districts and more. That’s where we can help. There’s truly no company better positioned or more experienced than Long & Foster to support Amazon’s HQ2 team.
- National and global network: With the backing of HomeServices of America, a Berkshire Hathaway affiliate, as well as affiliations with Christie’s International Real Estate and Leading Real Estate Companies of the World, we offer a vast national and global network to our clients.
- Unmatched financial strength: We’re supported by the nation’s No. 1 independent real estate company—HomeServices of America—instilling our clients with confidence that we’re well equipped to handle one of the most expensive transactions in their lives.
- Trusted & well-known brand: Since 1968, Long & Foster has helped D.C. area buyers and sellers on their journey home. We work and live for the love of home, operating on a foundation of trust, family and excellence that ensures our clients achieve their real estate goals.
- Market leadership: Just as Amazon’s the leader in its vertical, we’re the leaders in real estate. More home buyers and sellers in the D.C. metro region choose to work with Long & Foster than any other brokerage, for both luxury and traditional sales—proof that we understand the market and our clients’ needs.
- Family of real estate and financial services companies: Beyond our real estate expertise, we bring access to a family of companies that help our clients with all things home, from mortgage and settlement to home warranty and insurance.
Remember—it’s Day 1, and at Long & Foster, we’re focused, as always, on our local buyers and sellers, which now includes the Amazon HQ2 family at National Landing.