How Amazon is Impacting the Seattle Real Estate Market
In many respects, Amazon brought life into Seattle and rejuvenated the city when the online mega-retailer brought its corporate headquarters to the city about 7 years ago. Ushering in jobs and real estate development, Amazon became an anchor in the community and has continued to grow exponentially since coming to Seattle.
For any city, a major corporation impacting the local economy in such a way is often welcomed news, but Amazon's unencumbered growth has had negative impacts on the city along the way. It's a sensation that has been dubbed by locals as "Amageddon," and it's made its mark on the local real estate market.
Around the world, Amazon employs about 340,000 individuals — 30,000 of whom are based out of its Seattle headquarters. That's a pretty big chunk of the corporation, and the company recently listed another 10,000 jobs in Seattle alone. With its seemingly never-ending growth, Amazon is currently bursting out of its location in the north portion of Downtown Seattle.
Amazon intends to expand with a new development that will be located in the Denny Triangle neighborhood, according to an article on Inc. The entire campus is going to include four skyscrapers, adding to the eclectic Seattle skyline, as well as innovative and eco-friendly buildings known as biospheres.
The entire project is expected to be complete in 2022, and at that point, the online mega-retailer will occupy about 12 million square feet in the city. That equates to approximately 20 percent of all the office inventory in the city.
It doesn't have to be said that this is one of the largest footprints that one corporation can leave on a city, and local residents are interested to see how it will impact the area.
How Does This Impact the Real Estate Market?
"Amageddon" has produced some congestion in the city streets and has contributed to the rising cost of living in the community. In addition, it's also had a lasting impact on the local real estate market.
When Amazon decided to make Seattle its home base, it brought with it a slew of new residents. Many were willing to pay more to get the houses they wanted, ultimately driving up the cost of real estate. Home values in Seattle and throughout the surrounding region have increased more than 11 percent in the last year alone.
Not only has it significantly increased property values in the community, but it also contributed to the increasing price of rent for those who want to live in the downtown area. Recent data reveals that rent has increased by about 7 percent year-over-year, which is much higher than the typical 3 percent increases seen throughout the country. It's easy to see that Amazon has played a key role in the housing market, but company representatives maintain that they are doing everything they can to continue to invest in the community and hire locals.
While opinions may vary on how Amazon should handle its growing presence in Seattle, this company is still a leading innovator that will continue to have a positive impact on the Seattle economy, ultimately bringing more people to this thriving city.
If you are looking for your next home in Seattle, know that you're going into a record-breaking market that is rife with competition. You need the best real estate professionals on your side to find and secure the home of your dreams in Seattle and its surrounding suburbs. Contact us today!