What's Hot: DCRA Releases Revised Short-Term Rental Regulations For DC | Former AOL Executive Finds Buyer For $7.5 Million Georgetown Home
Here is How Many More Apartments The DC Area Will Need if the Region Lands Amazon

As the twenty locales on Amazon's shortlist for a second headquarters wait with bated breath for news of a selection, many have speculated how the arrival of the economic behemoth would affect the housing market. Now, a new HotPads analysis has quantified what the selected city would need to do to keep its rental market stable.
If Amazon selects any of the three local jurisdictions that are on the finalist list, the DC area would need to deliver an additional 2,600 apartments to the market each year to meet demand and keep rents growing at their current pace. The additional 2,600 units would be a 4.2 percent increase over what is currently on the market. The study expects that 39 percent of employees brought by Amazon would be renters.
story continues below
loading...story continues above
The DC area already has a robust apartment development pipeline, with 37,340 units expected to deliver in the next three years. Delta Associates' quarterly report estimates that 13,100 apartments are slated to deliver between this past June and June 2019; meanwhile, another 10,283 apartments are expected to deliver in the 12 months ending in June 2020. By those measures, the DC area seems well-prepared for an Amazon-sized influx of renters should development maintain or exceed its current pace. Although apartment absorption has dipped somewhat recently, the arrival of an Amazon campus will undoubtedly push absorption back above 10,000 units annually.
The HotPads analysis assumes that HQ2 will bring 50,000 jobs in the fields of management/administration, legal, accounting, and software development/engineering. Based on the homeownership rates associated with those fields, and assuming that the new jobs will be added at a steady pace over 7.5 years, HotPads deduced the number of new renters that will arrive annually.
See other articles related to: pipeline, hotpads, amazon second headquarters, amazon dc, amazon
This article originally published at http://dc.urbanturf.com/articles/blog/2600-more-apartments-needed-annually-if-dc-area-lands-amazon/14428
Most Popular... This Week • Last 30 Days • Ever

UrbanTurf is re-running its primer on property taxes which outlines a few things that... read »

Today, UrbanTurf looks at where homes were selling in less than a week in January. ... read »

ANC 3C approved a resolution in favor of the Office of Planning's suggestion to incre... read »

Another 30-day public comment period is currently underway.... read »

Another Shaw church has development plans on the boards.... read »
- The 5 Things To Know About DC Property Taxes
- Six Days or Less: The DC Neighborhoods Where Homes Flew Off the Market in January
- More Development on Connecticut Avenue? ANC 3C Passes Pro-Density Resolution
- DCRA Releases Revised Short-Term Rental Regulations For DC
- A Church-Led Residential Development on the Boards in Shaw
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro