Amazon is about to make a decision on their “HQ2.” The highly anticipate decision can be a prime housing move not just for the chosen city, but the region. As you now know, Montgomery County is on the short list. Some even have it pegged to be in the top five. Although many local residents are excited at the prospect of increasing home values, many others are anxious how a Montgomery County Amazon HQ2 will affect their quality of life.
If Amazon chooses Montgomery County, the county will likely see a similar impact that Seattle experienced. However, rather than be purely speculative, let’s look how Amazon has shaped Seattle. Stephen Cohen offers interesting statistics looking at how Seattle has changed after Amazon (How Seattle Changed After Amazon Came to Town; seattlepi.com; September 22, 2017). Cohen points out that Amazon has been based in Seattle since the mid 1990’s, and that the major impact on the town happened when the company moved to the South Lake Union campus (SLU) in 2010. Since the move, Amazon’s stock price skyrocketed and its market cap exceeded (and has since doubled) that of Walmart.
Cohen’s data goes beyond the pros and cons of having the business giant in the community and compares statistics that span from 2010 to 2017. During that time, Seattle’s population grew 17.3 percent. However, it remained as the 18th most populous US city. Although Seattle followed the national trend of becoming more diverse, its African American population slightly decreased (which was counter the national trend). Cohen describes Seattle’s population as “skews male,” probably because Amazon’s “workforce is 63 percent male.”
But the home values…Seattle has had one of the hottest and prime housing markets in the country. Seattle’s average home price increases are almost double the national average. Finding housing in Seattle is very difficult, as the town’s vacancy rate significantly decreased to about half that of the national average. The city’s median gross rent is 47.6 percent higher than the national average.
Other interesting facts from Cohen’s data…one-person households decreased from about 15 percent to slightly more than 10 percent. There was a 25.2 percent increase in commuters. And, the city’s mean household income increased 41.3 percent, which is more than double the national average.
Prime housing is not for everyone. Cohen cites the sharply increased cost of housing and high cost of living for negatively affected the poor, as well as the middle class. And although Seattle is the 18th largest US city, it has the third largest homeless population (according to a December 7, 2017 Seattle Times expose “King County homeless population third-largest in U.S.”).
But, Lisa Stiffler reported that Amazon’s philanthropic corporate culture has noticeably changed (What gives? Tech giant Amazon finally boosts its philanthropic rep in its hometown; geekwire.com; December 14, 2016). She notes that it is evident that employees are volunteering and getting involved with such activities as the Amazon “Non-Profit Expo.”
Seattle’s SLU is described by Stephen Cohen as an “Innovation District,” which is a Brookings Institute term for a “geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators, and accelerators.” SLU is similar to Montgomery County’s Technology Corridor. An Amazon move to MoCo’s Tech Corridor would likely dovetail with a $100 million plan to improve I-270 (the infrastructure plan was reported by the Washington Post last April). Such infrastructure improvements would open up Maryland’s western real estate market, which would ease some of the upward pressure to MoCo’s already tight prime housing market and already increasing home prices.
By Dan Krell
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