Amazon is the gift that keeps giving, especially for the metros that competed to host its HQ2.
In fact, Zillow’s latest Home Price Expectations Survey indicates that the housing markets of Amazon’s HQ2 finalists are expected to see their home-value growth outpace the rest of the nation in 2019.
The Home Price Expectations Survey reveals the predictions of more than 100 real estate economists across the country, detailing their perceptions about the housing market for the coming year.
According to Zillow’s research, markets in Denver, Colorado; Washington, D.C., Atlanta, Georgia; Dallas, Las Vegas, Phoenix and San Jose, California are likely to outperform the rest of America in 2019.
“Amazon ultimately selected two of the country’s most prominent hubs of commerce for their second and third headquarters, but many of the candidate cities that were not ultimately selected could see spillover gains in 2019,” Zillow Senior Economist Aaron Terrazas said.
Although, the majority of leading markets were finalists in Amazon’s HQ2 competition, Zillow claims not all metros on the short list will be as triumphant.
For example, the economists selected Chicago as the most likely metro to underperform against the national market.
According to the report, Chicago has struggled to recover from the housing bust over the past decade, as home values are still more than 13% below their pre-recession peaks.
Despite Chicago’s shortcomings, Terrazas believes the markets that are able to match consumer needs will be successful.
“The groundwork that they undertook to entice Amazon will also be attractive for smaller employers increasingly strained by high and rising costs in traditional tech hubs,” Terrazas said. “As mortgage rates rise, communities that can offer affordable workforce housing and reasonable commutes are likely to be long-term winners and should expect their housing markets to outperform the nation.”
NOTE: Zillow conducted the survey through Pulsenomics, which is an independent research firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate sectors.