Amazon’s decision to divide HQ2 between two cities has been making headlines across the country. New York’s Long Island City and Virginia’s Crystal City are the lucky winners, along with a smaller hub that will be built in Nashville. All three regions are now vying to know what comes next and many are seeking answers from the Amazon effect in Seattle.
The decision was announced on November 13th and now that the initial shock has worn off it is time to delve into the long-lasting effects that are in store. When the Seattle’s campus was built, the company never could have expected to see the impact it had on the city.
The population began to grow swiftly as individuals around the world sought out the Emerald City, and not only for employment at Amazon. Tech companies big and small, old and new have long since found home in the region, including Microsoft, Expedia, Zillow and Tableau. If you seek to build a career in the tech industry, it is no secret that the Puget Sound is filled with opportunity.
Amazon currently employs approximately 45,000 people in the city, and they aren’t finished yet.
The sheer increase in population caused a significant increase in the need for local housing, and served as the driving force as we watched the city break records in home price growth. The immense increase struck Seattle and its surrounding suburbs, and the region is still fighting to increase inventory to alleviate pressure within the real estate market.
Splitting the campus between two regions will allow the company to share prosperity throughout the nation, and will (hopefully) lessen the pressures associated with housing a brand new HQ including issues in overall infrastructure.
While time can only tell the future, there has already been a disruption in the real estate markets in the new HQ2 regions, as investors seek to purchase properties that have a potential for rental income.