When Amazon announced it was expanding its reach with an additional corporate headquarters, many speculated that real estate prices of homes in proximity to that new headquarters would go through the roof.
It turns out that part of that speculation of increased home prices spurred by Amazon is happening and part of that speculation is not, according to analyses done by CoreLogic.
The first category of regional price growth in relationship to Amazon’s HQ2 is relatively flat. Price growth in Washington DC, Arlington and Alexandria moved from +3.4% in September 2018 to +3.5% in September 2019. Price growth in Silver Spring, Frederick and Rockville went from +2.1% in September 2018 to +2.3% in September 2019. No big price boom, right?
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However, when one compares these two metros with national home price trends, both metros outperformed the broader area. From the end of 2018 to the beginning of 2019, national home price growth dropped two full percentage points from +5.5% to +3.5%.
When looking at zip codes, CoreLogic notices significant changes in home price growth and proximity to Amazon’s HQ2. Five of the top ten zip codes with the largest increase in y/y home price growth rates were within a five-mile distance to HQ2 and eight of the top ten zip codes with the largest home price increases y/y were within a 10-mile distance to Amazon’s HQ2.
Additionally, CoreLogic determined that from March 2019, the price gradient rose more sharply the closer the zip code was to HQ2 than the zip codes near the fringe of Amazon’s HQ2.
Take a look:
y/y y/y Change Distance (in miles)
Chevy Chase (20815) -1.1% +11.8% +12.9% 8.3
Vienna (221800 -4.8% +6.6% +11.4% 10.9
Mt. Vernon (22306) -5.3% +6.1% +11.4% 7.4
Alexandria (22302) -1.7% +9.3% +11.0% 2.6
Arlington (22206) +1.5% +11.9% +9.8% 2.2
Arlington (22201) +1.1% +11.0% +9.8% 2.8
Alexandria (23311) -1.3% +8.4% +9.6% 3.8
Chantilly (20151) -2.2% +7.2% +9.4% 20.6
DC NE (20017) +0.3% +9.4% +9.1% 6.3
Arlington (22204) 0.0% +8.6% +8.7% 2.1
Thanks to CoreLogic’s Ralph McLaughlin for source data.