According to Realtor.com the arrival of Amazon has meant home prices are escalating in some zip codes in Northern Virginia.
According to Realtor.com, a year after the tech company announced it will be opening a new headquarters in the Washington, DC, area, home prices in nearby neighborhoods are exploding—but in some more than others.
On the first anniversary of Amazon's highly anticipated HQ2 announcement, prices in communities near the company's new location just outside the nation's capital in the Crystal City neighborhood of Arlington, VA, have gone up.
In Virginia's Arlington County, where Amazon will be located, prices gone up 33% annually, according to a recent realtor.com® report. They hit a median $863,000 in October in the county after the news of Amazon's arrival. As folks rushed to get in on the action, the number of listings in the county dropped 49% compared with the previous year. Arlington has very low inventory.
In the 14 counties making up Northern Virginia, the number of listings fell 26% year over year.
Where are home prices rising the most?
Prices soared the most in Chevy Chase, MD, an affluent suburb of the nation's capital just over 8 miles away from Amazon's new headquarters, according to CoreLogic. Already-high home prices surged 11.8% year over year in the 20815 ZIP code from September 2018 through September 2019. The previous year, home prices in that area had fallen 1.1% from the year before.
The median listing price in that ZIP, the neighborhood of Kenwood, was $1,187,050 as of Oct. 1, according to realtor.com data.
"The Chevy Chase ZIP code is likely leading home price change because it’s close to the District of Columbia, and all of its employment and amenities. It has great-quality public and private schools," says McLaughlin. Plus, it offers relatively easy access to Amazon's new headquarters.
Prices also rose sharply in areas that have good access to the DC metro system, making it easier for folks to commute to Amazon—or to other jobs in the capital, he adds.
The suburb of Vienna, VA,22180, and the Grovetown neighborhood, 22306, in Arlington, VA, also got some much-needed boosts. Home prices had fallen 4.8% and 5.3% respectively in the prior year, according to CoreLogic data. But in the wake of Amazon's announcement, they've gone up 6.6% and 6.1%. Median list prices there were $1,398,925 and a more manageable $639,050, according to realtor.com data.
Prices in 22302 in the Del Ray community of Alexandria, VA, and in Arlington's Fairlington, 22206, also shot up 9.3% and 11.8% in the past year, according to CoreLogic. Median home list prices were $896,050 and $497,500, according to realtor.com data.