Amazon HQ Impact on Suburb Housing Market – Loudoun & Fairfax
Many investors, buyers, and homeowners were hoping and praying the Amazon HQ will land near Amazon’s sister site of Cloud Computing AWS offices in Herndon or Dulles area. After the official announcement of Amazon landing in Crystal City Virginia 22202, many were disappointed Amazon did not make a home to Virginia suburbs.
For folks reading this blog outside the DC Metro area, Crystal City is right outside Washington DC and close to Pentagon. Here is an overview of the location.
Here is are a few my personal thoughts process that will help eventually increase the housing demand in the suburbs of DC Metro area.
Getting to Crystal City from suburb you have to deal with the nightmare of the Northern Virginia traffic. With the HQ and other major employers in the DC area, this may get worst. If you plan to live and drive along Route 66 the toll is calculated based on demand and traffic volumes.
On the flip side, the option of telecommuting will encourage employees to work from home at least a couple of days. This will help expand housing hunting into suburbs of the Northern Virginia area. Carpool and improvement in transit bus services and metro arrival this will be factored in when a home buyer decides to purchase a home.
Many of these young forces may have families with kids to put through schools. Immediate DC metro area does not have a bandwidth capacity to handle the volume. In Northern Virginia Loudoun and Fairfax County is considered to be regions top school district. Many of the employees may expand their home searches to the suburbs like Centreville, Sterling, Ashburn, and Leesburg. Along with the strong schools, these areas also have the opportunity for many organized activities for kids and adults.
While Crystal City and nearby areas are well known for young folks. Families who want a yard for their kids and dogs will have to venture out to the suburbs as close as Springfield or far as Gainesville and Leesburg area. This will also help us with the rise in the demand for the suburb housing market.
Northern Virginia already has a lower unemployment rate. With a constant budget reallocation contractors with the government contract are getting hired from one department to other. With a technology giant like Amazon, they will bring additional talented human resources to our region. Companies like Amazon will attract other employers who will bring additional employment opportunity to the region. This will help the region with high-income employment opportunities. Consequently, a higher demand for housing!
House: Value for the Money:
Crystal City and immediate areas like Arlington and Mclean are already priced out for some homebuyers. A condo near Crystal City which will be walking distance to Amazon HQ2 prices between $200K to a million door. Larger townhomes and single-family homes options will increase as the home buyers expand their search into suburbs. If you are a suburban homeowner don’t worry about the housing value eventually we all will be reaping the benefits of the demand.
Overall the dominion impact of having 25000 jobs over a decade will be felt by everyone in the region!
Still unsure about housing appreciation in the suburbs? Read the other blog that highlights other aspects of Impact on the housing market in the Northern Virginia region with the announcement of Amazon HQ2.