Amazon's HQ2 May Cause Housing, Rental Market Price Hikes

One of 19 U.S. cities and Toronto, Canada, will become the home of Amazon's second headquarters, HQ2. Wherever HQ2 lands, rents and home prices will likely soar.

"Amazon’s decision on where it will locate its second U.S. headquarters has the power to transform the local housing market," says Javier Vivas, director of economic research for Realtor.com. "The city that gets selected will immediately see a boost to jobs and wages, pushing home values up and triggering new construction in neighborhoods within commuting distance from the headquarters location."

For many of the finalists, the big question is not just which city Amazon will choose: it's also where in the city it'll set up shop. If the tech behemoth moves to a city center or popular downtown area, rents and home sale prices will likely skyrocket as workers are less likely to want to live farther away and commute, says Andres Carbacho-Burgos, a housing economist for Moody's Analytics.

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