With the recent announcement that Amazon will be constructing a second headquarters expected to bring 50,000 highly paid jobs to a major American city on the Eastern side of the country, real estate investors have started to pay attention. That’s because a major employer like that is bound to cause an impact on the local housing market. With America’s aging housing supply and relative lack of new construction, this means the fix-and-flip market is going to see a major surge in demand in any city that is selected as a destination.
In an article originally published on Business Insider, Miles Deamer, Director of Investments at AlphaFlow, provided some interesting facts and figures with relation to the top city choices for Amazon. Here are the five that seem the most likely given today’s housing and business environments.
If there was ever a city that combined the resources Amazon will need with the housing supply that will be demanded by an influx of new workers and an environment like the home headquarters in Seattle, it’s Pittsburgh. Located on the western side of Pennsylvania, it is geographically centralized. The fact that it is inland in a Great Lakes state means that there is little to block growth in the city, and the success of other tech giants’ satellite offices in the city makes it a likely candidate. As Sturm points out, “The influx of well-paying jobs has contributed to a hot real estate market. Brookline, a South Hills community with easy access to the city’s subway line, has transformed in recent years to house both working professionals and students.”
Located a bit further south than Pittsburg, near the border of Ohio and Kentucky, Cincinnati is home to 2 million. It’s also one of the most affordable large American cities to live in, which would make it easy for incoming workers with competitive salaries to purchase. The median home value currently sits at just $152,500, and that is in a town where over half the real estate lies above the $100,000 mark. Other notable firms in town include Proctor & Gamble and Kroger.
Atlanta has become known as a destination city for Millennials because of its lack of natural boundaries to growth, its investment in infrastructure, and its vibrant cultural events and offerings. The city invested heavily in new parks and light rail, but a housing shortage has been plaguing the area for the last couple of years. Almost half the housing stock costs more than $200,000, but employees in the tech center are likely to be able to afford that price, and the city’s investments closely mirror those that Amazon has pushed to achieve in Seattle.
Another destination city popular with younger and more educated workers, Austin is also home to the famous South by Southwest festival, which combines music, art, and tech culture in a large-scale annual event that has come to be known as the destination for people looking to get a start in the tech industry. Building permit filings are up about a third over last year, too, so not only will there be a workforce ready to take on the challenge of staffing Amazon’s second headquarters, there will also be a housing market ready to handle the influx of new homebuyers.
Long known as a destination for country music artists looking to make it in the industry, Nashville also boasts a healthy population base and a business-friendly environment that make it a top contender for Amazon. As Ray Sturm points out, it has a lot of real estate development opportunity in West End and Midtown, where access to the downtown area is leading to an increase in demand.
Read the original article in its entirety over at Business Insider.