With Denver being in the list of potential cities to bring on Amazon's second largest headquarters, people are starting to talk about those potential impacts. Following Google, yet another huge corporation will only continue to increase the ever-growing city. But, can Colorado's current residents keep up? One major concern is how high rent prices may skyrocket. 50,000 new jobs will be created, more luxury housing will be built and rent is expected to rise by 1.1% per year. Learn more about what this means in the article in The Denver Business Journal, written by Ben Miller below:
If Denver nabs Amazon's HQ2, expect rents to soar
By Ben Miller – Contributing Writer
Oct 19, 2017, 6:44am If the Denver metro area is successful in attracting Amazon.com Inc.'s second headquarters, rents around here are expected to soar.
On Wednesday, the Metro Denver Economic Development Corp. submitted Colorado’s proposal for Amazon’s HQ2 complex, which is expected to bring 50,000 jobs.
On Thursday, a report was issued that indicates that if Denver's successful in attracting Amazon (Nasdaq: AMZN) HQ2, Denver rents could go up an additional 1.1 percent a year.
San Francisco-based Apartment List research indicates that would cost a Denver renter household up to $11,452 over the next 10 years.
Denver rents have gone up dramatically in the past few years (up 52 percent from 2005 to 2015) and an influx of Amazon workers would do nothing to ease those price increases, according to Apartment List.
"With a low vacancy rate and too little permitting, Amazon’s new HQ2 presence would increase rents an additional 8.8 percent over 10 years. Lower wage workers, including those needed to support Amazon, would be especially impacted by these rent increases, as new housing built for Amazon and other tech workers would skew towards the luxury end of the market," the company said in a statement.
"Denver will be more impacted by the influx of high-wage workers than other metros studied," the company continued.
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