As most Americans have heard by now, Amazon recently announced that they would be creating new headquarters in two cities, Crystal City, Virginia, and Long Island, New York. They will be building a 4 million-square-foot warehouse in Long Island and will be looking to fill approximately 50,000 jobs between the two locations. While this news is great for the economy in the two major cities, it will also have a direct impact on real estate, especially in New York City.
New York City is known for its expansive buildings and large population and has become known as one of the most expensive cities in the United States to live in. In recent years, the city has become home to countless residents with a population of over 8.6 million people, with more making a move daily. With so many people moving to New York City, the demand for new, affordable housing has not been able to keep up, making it significantly more difficult to find an affordable place to live. With Amazon expected to hire nearly 25,000 new employees, more people will be moving to New York City and will need to find a place to live. With such a big influx of new residents, housing will become scarce and more expensive.
As New York City continues to handle the current housing shortage, many Amazon employees might find that they want to live in Long Island instead. The island has seen significant growth in its economy in recent years, which has led to new developments and updates in the area. Because of the new developments and updates, Long Island has seen increases in housing costs, with the median price of $2,450 per month. Fortunately, Amazon is working to develop more housing units for its employees, with nearly 6,400 more units expected to debut by 2020.
Even with more housing units, current residents are concerned that a major development like Amazon can negatively affect other areas. According to Curbed New York, a majority of schools in Long Island are well past capacity at 212% capacity, indicating that the population is continuing to grow without the necessary resources that they need to thrive. Like the housing shortage, schools are experiencing a problem with running out of room for the city’s population.
While there are many concerns about Amazon’s new headquarters, there are countless benefits to hosting the major company’s new headquarters. The company will be employing 25,000 people while also helping to boost the economy of the great city.