And the chosen city is likely to get an economic jolt -- particularly to its housing market.
The selected city will get an immediate boost to jobs and wages, said Javier Vivas, director of economic research for Realtor.com.
It will also push up home prices and lead to new home construction in neighborhoods within commuting distance from the headquarters location, he added.
Just how much home prices will rise in Amazon's chosen city will depend on a variety of factors: the existing inventory, recent home price performance, demand and the space available for new construction. "The impact in markets where there has been single-digit appreciation ... we could see a jump, at least in the short term, to double digits of 10%-20% or even more appreciation for the first year," he said.
The big winners in the chosen city will be current homeowners who will likely see their home appreciation rise when Amazon moves in. "If you are in a larger house and ready to downsize or move, this will be a pure gain for you," said Stijn Van Nieuwerburgh, professor of finance and director of the Center for Real Estate Finance Research at New York University Stern School of Business.
Another indirect advantage for the winning city: Rising home values will likely to lead to higher property taxes, which could help boost a city's budget and services. "As property taxes and revenues go up, that can go to schools and improve their quality and better fund programs ... and infrastructure," said Van Nieuwerburgh. "If you are a first-time homebuyer in the selected city, this is bad news," said Van Nieuwerburgh.