The Amazon Effect: Exploring HQ2's Impact on the Washington Metropolitan Area's Real Estate Market

As reported today by The Wall Street Journal, Amazon, the world's largest technology company, announced the locations of its newest corporate headquarters.

Dubbed HQ2, Amazon will deliver new corporate outposts in New York, New York and Arlington, Virginia.

The announcement, which introduces new jobs and infrastructure to the Washington Metropolitan Area, presents serious questions about the impact on home values and the real estate market at large.

To help understand the impact of Amazon HQ2 on the Washington Metropolitan Area's housing market, we spoke with Mark C. Lowham, CEO and Managing Partner of TTR Sotheby's International Realty.

4075 35th Street North, Arlington, Virginia presented by Holly Tennant of TTR Sotheby's International Realty.

Manage Expectations

While Amazon's selection of the Washington Metropolitan Area will undoubtedly result in an increase in demand for housing, the planned 25,000 jobs will likely be filled over the course of the next three to five years. So while the immediate impact on the local marketplace will be meaningful, consider managing expectations around a sudden boom scenario.

Supply and Demand

Throughout the Washington Metropolitan Area, the housing inventory pipeline remains relatively fixed. As a result, it will take several years for new projects to move through the development pipeline. While we can expect more competition and upward pressure on prices in the existing rental and for sale housing market, it's important to understand the near and long term effects.

Furthermore, location matters. As a result, submarkets with access to public transportation and proximation to Arlington and Crystal City will likely be impacted most by the move in the immediate and long term.

How Amazon's HQ2 Announcement Could Affect Your Rent »

4036 35th Street North, Arlington, Virginia presented by Donna Martin of TTR Sotheby's International Realty.

Find a Trusted Broker

Each year, thousands of military personnel, government employees, and professionals from the world’s leading corporations relocate to the Washington Metropolitan Area.

When considering a personal or professional relocation, it's advisable to consult with an experienced real estate professional in your target marketplace.

With seven real estate offices across Washington, D.C., Maryland, and Virginia, TTR Sotheby’s International Realty offers a best in class relocation platform, including partnerships and preferred broker relationships with some of the world’s leading corporate relocation companies, including Cartus, SIRVA, and Graebel.

What Amazon's HQ2 decision will mean for the area's real estate market » 

2323 Ridgeview Road North, Arlington, Virginia presented by Daniel Heider of TTR Sotheby's International Realty.

Finally, as we welcome our friends from Amazon to the Washington Metropolitan Area, we are reminded of the power of the Sotheby’s International Realty network.

Offering unparalleled access to the world’s finest homes, TTR Sotheby’s International Realty’s 450 real estate professionals are uniquely positioned to help buyers and sellers alike navigate the dynamics of our ever-changing real estate market.

Alongside our colleagues at Daniel Gale Sotheby’s International Realty, whose service areas include Long Island, Queens, and Suffolk, we encourage you to reach out for a personal consultation on what Amazon HQ2 means for you and the market at large.

TTR Sotheby’s International Realty is a licensed real estate brokerage in Washington, D.C., Maryland, and Virginia.