Amazon in Arlington, Va.

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Homes are Becoming More Expensive in Neighborhoods Close to Amazon HQ

May 27, 2019

By Cameron Jenkins

As Amazon's new headquarters makes its way to Northern Virginia, the housing market in Pentagon City and Crystal City is heating up.

Homeowners in the area are now pricing their homes up to $10,000 to $20,000 more than before the company entered the area, according to Redfin.

Related: Amazon Splits HQ Between New York and Northern Virginia

“Over the last few months, most of my homebuyer clients cite one of two scenarios, and speculation about Amazon’s impact is part of the thought process for both: They want to buy now either because they’re concerned they’ll soon be priced out of the market, or to secure an investment property for rental and future resale.” Redfin agent Mara Gemond said.

For buyers looking in the area, home sale price in that area has increased nearly 17.7%, putting the median home price at $655,000. And even at these heightened prices, homes are flying off the market, averaging just six days until they are placed under contract comparend to the 10 days it would have taken in the past.

Related: Arlington Amazon HQ2 is Breaking Ground

This is up from other markets in the area, including Alexandria, which has increased by 1.9% and the D.C. metro area as whole, which has seen a 2.7% median sale price increase, Redfin reports.

"There are a lot of people in the area who aren’t Amazon employees, and some of them may find it difficult to find and afford homes in the coming years,” Redfin agent Marcia Burgos-Stone said.

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