After cutting their list of 238 contenders down to 20, Amazon has shortlisted three locations in the DC area for their next headquarters: Northern Virginia, Montgomery County, and Washington, DC. In this series, we’ll be exploring how Amazon’s HQ2 might impact each location’s real estate market.
This is the third installment of our three-part series. If you haven’t already, you can read part one and part two to see what the move would mean for Northern Virginia and Montgomery County.
A Quick Refresher
Washington, DC is home to highly-educated professionals, vibrant neighborhoods, and hits all four of Amazon’s main location requirements as per their request for proposal. Many say that it’s a likely choice for Amazon’s HQ2 as CEO Jeff Bezos owns The Washington Post and also purchased DC’s most expensive home in 2016 (with a $12 million expansion currently underway).
If chosen, Amazon’s HQ2 will bring with it up to 50,000 high-paying jobs, an 8-million-square-foot corporate facility, and a $5 billion investment in new construction.
The Market Impact in Washington, DC
Washington, DC’s median sold price currently sits at $591,000 (source). We are in a hot seller’s market, and if the city is selected for Amazon’s HQ2, you’ll likely see prices rising even further as more pressure is put on the already-expensive housing market – a trend that some have coined “The Amazon Effect”.
We suspect that Washington, DC’s housing market will experience a significant boost, even if Montgomery County or Northern Virginia are chosen instead. Our team regularly works with buyers who want to live in DC for its vibrancy and walkability – even if they work outside of the District – and the addition of an Amazon headquarters will only increase its attractiveness.
Where to Invest
Investors, keep your eye on properties around the Anacostia Riverfront, Capitol Hill East, Shaw-Howard University, and NoMa-Union Station areas, the four locations that Washington, DC has proposed for Amazon’s HQ2. Here is a closer look at each area:
Anacostia Riverfront: This high-density neighborhood has mixed-use real estate for those seeking residential or commercial investment opportunities. The proposed site of Amazon’s HQ2 would include a waterfront campus on both sides of the river connected by river taxis, bikeways, the river’s 28-mile trail system, and more. Median Sold Home Price: $365,000 (source)
Capitol Hill East: This neighborhood is known for its Federal-style row houses and Victorian homes, but there are some condominiums as well. The government-owned site proposed for HQ2 would become a self-contained campus over five phases, and the development of the campus could potentially be integrated into development plans that the city is already working on for the area. Median Sold Home Price: $1.1 Million (source)
Shaw-Howard University: If selected, Amazon’s HQ2 would be anchored by the world-class Howard University in the Shaw community. If purchasing an income property here, investors would have a range of potential tenants from student renters to Amazon employees, with a real estate landscape comprising row houses, apartments, and condos. Median Sold Home Price: $690,000 (source)
NoMa-Union Station: One of DC’s fastest growing neighborhoods, NoMa-Union Station is bursting with residential, office, retail, and hotel space. Here, you’re investing in one of the city’s most well-connected neighborhoods both in terms of transit and technology (it has a Walk Score of 94 and 30+ blocks of free Wifi). Most residential properties here are apartments and condos, with some single-family homes in the east end. Median Home Value: $451,600 (source)
Wherever the new location is, it’s likely that new development will follow, offering more investment opportunities for buyers to invest in further down the road.
Ready to leverage this exciting community development in your favor? Get ahead of the real estate rush by finding your next investment in Washington, DC.
Whether you are thinking of buying, selling, or investing, now’s the time to contact our team.