October 6, 2017

How will Amazon’s headquarters affect Denver real estate?

There’s been a lot of chatter regarding Amazon and the possibility of them building a second headquarters in the Denver Metro area. If they do build a second headquarters here, they’ve indicated that they could add up to 50,000 employees making, on average, $100,000 per year plus benefits.

How will the Metro area be affected? 

50,000 more people to a city that is already growing rapidly means more cars on the road.  Traffic and city streets have already been getting worse in recent years due to the rapid incline in population. And although public transportation has improved like the light rail to the airport, traffic is likely to get worse. Points of interests, such as restaurants, are likely to be more crowded and more difficult to get a table.

How will Denver Real Estate and Housing be affected? 

How would 50,000 more people in the city making approximately $100K per year affect the already hot Denver market? According to the highest demand for homes right now is in the $250,000-$350,000 range. Adding the Amazon employees may increase that range from $350,000-$500,000.  Additionally, the increase in home values will just continue to rise. Housing Affordability may get worse, instead of better, despite Governor Hancock’s plan to improve it.

Further, if Amazon chooses a more rural area like Louisville, as it has been mentioned this is a potential location, there’s a good chance that new builds will be in high demand. Which, could be challenging as we’re already experiencing hardships meeting deadlines due to lack of laborers.

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