Last year, Amazon’s search for the home of its second headquarters sent serval states into a frenzy, one that lasted for nearly a year.
When the tech giant finally announced it had decided to split its headquarters between Arlington, Virginia, and Long Island City, New York, each housing market erupted in activity.
But just last week, it was revealed that Amazon is reconsidering its decision after various New York politicians and community members have vocalized their disdain for the company's move into Queens.
“The question is whether it’s worth it if the politicians in New York don’t want the project, especially with how people in Virginia and Nashville have been so welcoming,” a source told the Washington Post.
As pressure mounts, an important question hangs in the balance: What will happen to the metro's housing market if Amazon decides to jump ship?
Real estate listings website Realtor.com believes Amazon’s abandonment could potentially benefit Queens' current residents in the long run.
“Uncertainty over whether Amazon will establish an HQ2 in Queens is likely to slow the pace of sales and price growth in Long Island City and surrounding neighborhoods in the short-term as speculators temper their enthusiasm for a quick return on their investment,” Realtor.com Chief Economist Danielle Hale said.
According to the company’s analysis, home price growth in Queens has been slow. In fact, the median asking price in Queens has been relatively flat since November.
This is great news for residents, as those making the average income of $67,700 can reasonably afford less than 12% of the homes currently on the market.
However, Realtor.com projects the New York metro area could grow by 3% and double the rate of price growth in 2019, putting affordable housing further out of reach.
Amazon’s presence tends to raise the cost of living in the metros its located, and this affordability concern seems to be the reason why Queens residents have been pushing back on Amazon’s decision to move there.
Hale suggests a slower pace of growth will be more manageable for existing residents, although the neighborhood will remain a highly sought-after destination for home buyers.
However, if Amazon does decide to drop anchor in the borough, Hale expects the fundamental strengths that attracted Amazon to the area, will keep the Queens market humming for the foreseeable future.
