After Amazon HQ2: New York and D.C. Offer a Tale of Two Housing Markets
Arlington, Va. housing market continues to surge while Manhattan has cooled off
SANTA CLARA, Calif., May 23, 2019 /PRNewswire/ -- Being named an Amazon HQ2 winner has resulted in dramatically different outcomes for the Arlington, Va. and Manhattan, N.Y. housing markets, according to a recent realtor.com® analysis released today. Although the initial announcement instantly fueled the housing markets in both cities, Amazon's later decision to pull out of Queens, N.Y., has cooled the Manhattan market, while Arlington continues to remain hot. Immediately following the November announcement, home sales in both cities jumped 50 percent year-over-year, but their similarities ended there. To date, Arlington has seen six-figure (17 percent) median list price growth of $110,000 and a more than 40 percent drop in inventory, while Manhattan has had a comparatively meager price increase of less than 3 percent growth of $40,000, and a 3 percent decrease in inventory. Another difference is the metros' geographical impact. News of the Arlington headquarters prompted a flurry of activity in the area closest to the new headquarters, but the Queens headquarters spurred growth across the bridge in Manhattan, likely due to anticipated high salaries from Amazon. "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, realtor.com®'s chief economist. "Meanwhile, Manhattan's housing market, which boomed in November following the announcement, has cooled off after Amazon decided to pull out of the city." Amazon Effect Increases Home Prices Conversely, the typical Manhattan home list price was $1.65 million in November. Since the time of the announcement and subsequent pulling out, Manhattan's median list price has increased a pedestrian 2.4 percent to $1.69 million. Sales Surge and Inventory Drops Following Announcement Meanwhile in Manhattan, the housing market responded similarly in the early stages, but changed following Amazon's reversal. Initially, after the announcement in November, home sales jumped 52.1 percent year-over-year -- a night and day difference from the 0.7 percent increase Manhattan saw the previous month in October. In February, Manhattan home sales were up 11 percent year-over-year, a healthy increase, but still significantly lower than the area's initial response. In November, Manhattan had 8,275 active listings available for sale. That number dropped to 8,015 in February. Even though more homes were scooped up in Manhattan than in Arlington, it resulted in a much less noticeable, 3.1 percent decrease. Buyers Expand Their Search Area to Find a Home Amazon's Impact Extends Into Luxury Sector
About realtor.com® Contact: Cody Horvat -- cody.horvat@move.com
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