Home sales in Arlington, VA have increased 17.3 percent since Amazon‘s announcement that the city would be the home of its second headquarters (HQ2). In addition, there has been a larger drop in Arlington’s home inventory, which indicates that the supply cannot meet the demand.
According to Realtor.com, the number of active listings in Arlington was down almost 50 percent in April from the previous year to less than 400 listings. The average price for the top 5 percent of homes reached $2.4 million — a 22.1 percent boost over the same period last year.
“With a household name as big as Amazon moving into Arlington’s backyard, we expected that home prices were going to increase. But because the number of homes for sale is not keeping up with demand, the price growth we’ve witnessed so far in both the mid-market and luxury sector has been dramatic,” said Danielle Hale, chief economist at Realtor.com, according to Bloomberg.
Data from Zillow shows that, of the more than 1,000 counties analyzed, Arlington County — neighboring Alexandria City and Fairfax County — is among the seven tightest markets in the country.
Manhattan prices went up 2.4 percent after it was picked as an HQ2 location as well, but the market cooled after the eCommerce giant dropped the city back in February. After the HQ2 choice was announced, concerns and complaints began to emerge from local residents and officials that the move would present more problems for long-term residents in terms of rising housing and service costs than opportunities.
In its blog post announcing the plan’s cancellation, Amazon thanked Governor Andrew Cuomo and Mayor Bill de Blasio for their efforts on behalf of the project. However, it was noted that “a number of state and local politicians have made it clear that they oppose our presence, and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.”