HQ2’s Prime Effect on Local Housing Markets

Amazon, Inc. – which is looking to build a second headquarters (HQ2) – announced the 20 finalist markets on January 18, 2018. Amazon’s decision carries with it fascinating economic implications, as the company claims its HQ2 will bring 50,000 jobs to the selected area. While the specific effects vary depending on the area in which HQ2 locates, the potential addition of 50,000 jobs will impact government revenue via personal income and corporate taxes, and lead to increased demand on roads and school systems, and increased demand for housing. For example, if HQ2 locates in New York or Los Angeles, the relative effect on the local area will be smaller than if HQ2 ends up in Raleigh, NC or Austin, TX.