With Denver being considered as on of the locations for the new Amazon Headquarters, speculation on what that could do to rent in the area is already being discussed. Of 20 cities being considered, Denver and Nashville are the two with the most potential of feeling the increase in rent. In the Denver Business Journal, Zillow estimates an increase of 3.6% in rent in the Denver area if Amazon HQ moves here. Read more below:
Denver rents would zoom if Amazon builds HQ2 here, says report
By Ben Miller – Contributing Writer
a day agoIf Amazon.com Inc. picks Denver for its new HQ2, residents could see rents going up more than ever.
According to research by Zillow, Denver rents could increase an additional 2.3 percentage points each year if Amazon picks Denver. Only Nashville would see rents rise more (2.4 more percentage points) than Denver's in the country if that city is selected.
In January, the Seattle-based e-commerce giant (Nasdaq: AMZN) released a list of 20 cities that could end up with the company's coveted new $5 billion second headquarters campus that it says eventually will employ 50,000 people.
Of those 20 cities, Nashville and Denver rank one and two when it comes to expected HQ2 impacts on rent, followed by Los Angeles. Without Denver being selected as HQ2, Zillow expects Denver-area rents to increase 3.6 percent next year.
What would an additional 2.3 percent increase in rent mean? Zillow estimated that the current median rent in the Denver area is $2,047. If Amazon picks Denver as HQ2, that would jump to $2,168 in 2019.
"Nashville and Denver are the only two metros that could see a greater boost to rents due to Amazon than Seattle has seen," said Aaron Terrazas, Zillow chief economist, in a statement.
And Seattle's housing costs have gone through the roof in the past few years. Although Amazon isn't the only reason Seattle's housing costs have skyrocketed, the company is on a manic hiring frenzy in that city.
The New York Times reported today on the Zillow report, quoting Felicia Griffin, executive director of United for a New Economy, a Colorado nonprofit that has opposed the Amazon project, who said “I definitely think it has the possibility of pushing us over the tipping point."
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