Toronto landlords will make just $16 extra if Amazon moves in

Toronto landlords will make just $16 extra if Amazon moves in

Toronto landlords will make just $16 extra if Amazon moves in

If Toronto is the city selected as the home to Amazon’s second North American headquarters (HQ2), landlords may be disappointed.

That’s because the city is one of the least likely to see a large increase in rents from an estimated 50,000 new workers moving to the city according to an analysis from Zillow.

The real estate platform estimates that rents in a year from now will be 1.4% higher than there are now, an average $1,031. The impact of HQ2 will be just $16 per month, a 0.2 percentage point rise.

The city which would benefit the most from the Amazon effect is Nashville.

If Amazon starts hiring in 2019, monthly median rent in Nashville would jump from $1,511 to $1,547 -- which is an extra $431 per year paid in rent – or 2.4 percentage points higher than the 1% rise estimated without HQ2.

“Many of the finalist cities have a relatively strong record of adding new rental supply in response to new demand, helping curb rapid rent growth – though rents could escalate more quickly in communities with a smaller employment base and/or those unable or unwilling to add meaningful new housing supply,” said Zillow senior economist Aaron Terrazas.

“Growth often brings growing pains, and in the past it has been lower-income households that bore the brunt of rising housing costs in the face of rapid expansion. Whichever community is chosen, it's critical that local leaders begin working now to prepare their cities as best they can," he added.

Metro Name

Boost to Annual
Rent Appreciation
from Amazon HQ2
(percentage
points)

YoY Rent
Forecast
without
Amazon

Current
Median Rentiv

Median Rent in 2019 if
Amazon Moves In

Nashville-Davidson--Murfreesboro--Franklin, TN

2.4%

0.9%

$ 1,497

$ 1,547

Denver-Aurora-Lakewood, CO

2.3%

3.6%

$ 2,047

$ 2,168

Los Angeles-Long Beach-Anaheim, CA

1.9%

3.0%

$ 2,746

$ 2,880

Pittsburgh, PA

1.9%

-1.0%

$ 1,063

$ 1,072

Raleigh, NC

1.9%

2.4%

$ 1,436

$ 1,497

Miami-Fort Lauderdale-West Palm Beach, FL

1.7%

2.5%

$ 1,862

$ 1,940

Boston-Cambridge-Newton, MA-NH

1.4%

3.6%

$ 2,371

$ 2,490

Columbus, OH

1.3%

1.1%

$ 1,317

$ 1,349

Austin-Round Rock, TX

0.8%

0.7%

$ 1,686

$ 1,710

Dallas-Fort Worth-Arlington, TX

0.8%

2.3%

$ 1,606

$ 1,656

New York-Newark-Jersey City, NY-NJ-PA

0.8%

-1.0%

$ 2,401

$ 2,396

Washington-Arlington-Alexandria, DC-VA-MD-WV

0.6%

0.5%

$ 2,146

$ 2,170

Atlanta-Sandy Springs-Roswell, GA

0.4%

3.2%

$ 1,394

$ 1,445

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

0.4%

0.4%

$ 1,579

$ 1,592

Greater Toronto, ON

0.2%

1.4%

$1,031 (CAN$1,333)v

$1,047 (CAN$1,354)

Chicago-Naperville-Elgin, IL-IN-WI

0.1%

-0.2%

$ 1,653

$ 1,651

Indianapolis-Carmel-Anderson, IN

0.0%

-0.2%

$ 1,208

$ 1,206

 

 


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