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The HQ2 Home Price Effect Was Short-lived, Per Report

  • November 13th 2023

by UrbanTurf Staff

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Design of The Helix at Amazon's HQ2. Click to enlarge.

When Amazon announced in 2018 that it would be opening a second headquarters in Virginia (HQ2), UrbanTurf, among other publications, spent a good deal of time speculating what effect the headquarters would have on the area housing market. Now, a new report offers some answers. 

In short, the HQ2 effect was brief in Northern Virginia, per a new report from Bright MLS. The various effects of COVID-19 were larger drivers of the regional market, according to the report. 

“While the announcement prompted both elation and anxiety, the effect on the housing market was short-lived as the COVID-19 pandemic and the resulting government and business responses to the pandemic have had a much bigger impact on the housing market,” Bright MLS Chief Economist Dr. Lisa Sturtevant said.

HQ2-chart.jpg
Click to enlarge.

The report found that, in the 18 months between the HQ2 announcement and the beginning of the pandemic, prices for single-family detached homes in Arlington's 22202 zip code and Alexandria's 22305 zip code rose by 17% on average, compared to 10% across the rest of the country. While perhaps a telling statistic, the report acknowledges that a variety of other factors may also have resulted in the price increase. 

"Overall, while Amazon's HQ2 had a temporary impact on home prices in Arlington County, particularly in the single-family market, longer-term home price trends have been driven by underlying supply and demand fundamentals and, more recently, the COVID-19 pandemic."

To view the full report, click here

See other articles related to: amazon hq2, amazon hq2 real estate effect

This article originally published at https://dc.urbanturf.com/articles/blog/the_hq2_effect_was_shortlived_per_report/21680.

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