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