Amazon has narrowed down its hunt for a second home to 20 locations. And the chosen city is likely to get an economic jolt — particularly to its housing market.
The company announced in September that it plans to open a second corporate headquarters, and a nationwide bidding war soon broke out. Some cities offered massive tax breaks, while others got creative with their courtship. Tuscon, Arizona, sent a giant cactus to CEO Jeff Bezos and one Georgia town pledged to name an area “The city of Amazon (AMZN).”
The second headquarters is expected to cost at least $5 billion and create as many as 50,000 high-paying jobs — no wonder cities rushed to lay out the welcome mat.
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.
When a big company moves into a new town it tends to have a ripple effect on the local economy: job creation strengthens, some wages increase and home prices rise.
Just look at what happened in Reno, Nevada, after Tesla opened a massive battery factory: Home prices have soared 43% since the fall of 2014, following the start of construction on the Gigafactory, according to Daren Blomquist, senior vice president of communications at ATTOM Data Solutions.
The same phenomenon occurred when Apple moved its headquarters to a new location in its home city of Cupertino, California. In the three years following the project’s approval, homes located within a mile of the new campus appreciated…