If the new campus is built in NY, rents in the area could rise 0.7% next year, up from a projected 1% decline, according to an analysis conducted by Zillow in April. When accounting for the so-called Amazon Effect, which would most likely be diluted if Amazon were to split its new headquarters between two cities, it predicted that rents would decrease by only 0.2%. While many Amazon residents could choose to locate in Queens, others may seek an address in Brooklyn or Manhattan.
When courting potential host cities for its HQ2, Amazon sought tax breaks and incentives; the Journal reports that Google has not applied for any NY subsidies or tax incentives as part of its expansion. If reports are true that Amazon will also split its new headquarters - and 50,000 jobs - between Long Island City in Queens and Arlington County, VA, New York City would become an even more significant player for the two tech giants. The median rent in Astoria is around $2,200, compared to around $2,450 in Long Island City, and $3,400 in Manhattan.
Renters' costs could increase more than $200 annually in both cities if Amazon brings offices to those locations, according to an analysis conducted in April by the real estate siteZillow.
If the new campus is built in NY, rents in the area could rise 0.7% next year, up from a projected 1% decline.
In the Washington, DC, area, Amazon's headquarters could drive up rents by 1.1%, or twice as fast as the rate projected without a new Amazon campus.
That would translate into about $US24 more monthly, or $US288 annually, for those paying the city's median rent of $US2,146.
Zillow's forecast was based on the assumption that Amazon would build a single campus for its new headquarters, meaning that splitting the headquarters between the two cities could lessen the impact to each city's rental costs.
The reported expansion comes as Amazon is reportedly set to open its second headquarters (HQ2) in the city, adding some 25,000 jobs, although no official plans have been announced.
Site highlights each day to your inbox.