Amazon in Denver? A Look at Housing Implications
CAR spokesperson Kelly Moye spoke with Next on 9News to discuss housing implications of Amazon building a second headquarters in the metro area. See the full story on 9News.com.
DENVER – Gridlocked roads, high housing prices, crowded restaurants, disappearing beautiful scenery.
It sounds like Denver, but it’s a description of Seattle, Amazon’s current headquarters.
After Amazon announced it’s looking to build a second headquarters outside of Seattle earlier this month, Denver and Colorado leaders were quick to jump at the opportunity to lure the company. They’re in line with countless other cities across the country.
“We already have incredibly low inventory and incredibly high demand without them coming, so it’s only going to make things worse,” said Kelly Moye, REALTOR® and member of the Colorado Association of REALTORS®.
Moye said she can’t directly predict the impact an Amazon move might have on the market, but it would certainly drive up prices.
Amazon has said workers at its second headquarters would make an average of $100,000 per year in salary and benefits. Moye estimates with that income alone, they would qualify for a $400,000 or $500,000 mortgage.
She says the largest demand for homes in Colorado these days are in the $250,000 to $350,000 range.
“It may change our sweet spot, so to speak,” Moye said. “If our sweet spot is say, $350,000 and under, that sweet spot may jump to $500,000 and under.”
And Moye said prices will likely jump immediately after any announcement from Amazon. She points to Louisville, Colorado as an example of this.
In 2009, Conoco Philips was expected to bring thousands of jobs to the Louisville area.
“Conoco Phillips never came – but we still experienced the appreciation,” she said.