A R L I N G TO N A MA ZO N
LONG & FOSTER MANAGING BROKER KARA CHAFFIN DONOFRIO’S TAKE ON HQ2 Amazon’s decision to build their HQ2 in Arlington is a huge win for the DC metro area, and not surprisingly, especially welcome news for some Arlington residents and homeowners. Since the announcement, we have received a significant increase in the number of calls and internet inquiries from investors, buyers, and sellers. Mainly, people want to know —
WHAT IS THE IMPACT OF HQ2 ON HOUSING? An estimated 38,000 jobs will relocate to the area over the next 16 years with the average worker earning $150,000/ year (higher than the current average annual salary of Arlington residents). I have seen several reports from local agents indicating that they expect 40% appreciation, basing their assumptions on the huge real estate boom in Seattle due to Amazon. While I absolutely believe we will see increases in home values and the housing market will become even more competitive, some of these far fetched appreciation models are not in line with the expert research and panel discussions I’ve followed. Given that the DC market is a larger market than Seattle, we will more easily be able to absorb the estimated 2,400 jobs added per year until the phases are complete. According to a report published by the Stephen S. Fuller Insitute, “the housing impacts will be geographically dispersed and gradual.” That being said, following Seattle trends, we expect the biggest sustained appreciation to be within 5 miles from the Amazon campus, with the immediate areas of Arlington, Alexandria, and Fairfax due to experience the largest bump in home value. One of the biggest wins from Amazon’s announcement might be the additional coverage and exposure for our region. Economic development wins create more economic development wins, and any company that hasn’t had the Northern Virginia area on their radar has it on their radar now. Apple has been rumored to be quietly exploring a new location in Northern Virginia, and I suspect that other companies will be doing the same as we look to the future.
BOTTOM LINE AS WE LOOK INTO 2019 — We live in an increasingly desirable community, and anyone that has considered a home purchase would be wise to act sooner rather than later, especially when considering rising interest rates. As a home seller, you may be wise to take advantage of the current Amazon hype and sell while there is still increased buyer competition and a rise in outside investors flocking to the area. Our Arlington team is comprised of top producing seasoned specialists that are wealth of knowledge about the entire Arlington area. We are happy to assist anyone that has additional questions regarding their home values or is looking to buy/invest now.
– Kara Chaffin Donofrio
KARA CHAFFIN DONOFRIO, MANAGING BROKER Arlington Office Licensed in VA/DC/MD 703.795.7238 Mobile | 703.522.0500 Office Kara@LNF.com Email