Amazon’s second headquarters will drive up housing costs — here’s exactly how much your rent will increase

Rental costs will rise in the city Amazon selects as the home of its second headquarters.

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Rental costs will rise in the city Amazon selects as the home of its second headquarters.
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Shutterstock

  • Amazon‘s second headquarters will drive up housing costs.
  • Some cities will be hit harder than others, according to a new analysis by Zillow.
  • In Nashville, rents would rise 3.3% next year, about four times faster than currently projected. That translates into about $49 more monthly on Nashville’s median rent of $1,497.
  • Amazon’s second headquarters will drive up housing costs. In Los Angeles, rents would rise 4.9%, or $52, on top of the expected increase of 3%, or $82, for those paying the city’s median rent of $2,746.

Amazon is expected to bring skyrocketing housing costs along with the thousands of high-paying jobs it’s promising to the city it selects as the home of its second headquarters.

If the new campus is built in Nashville, rents would rise 3.3% next year – about four times faster than currently projected, according to a new analysis by the real estate site Zillow. That translates into about $49 more monthly on Nashville’s median rent of $1,497.

In Los Angeles, rents would rise 4.9%, or $52, on top of the expected increase of 3%, or $82, for those paying the city’s median rent of $2,746.

The increases in rental costs will kick off next year, assuming Amazon starts hiring for its second headquarters in 2019, a Zillow spokeswoman told Business Insider.

Here’s how much annual rental costs will increase for each city next year if it wins the contest for Amazon’s second headquarters. The dollar value shown is how much rent will increase on an annual basis, according to each city’s median rent.


Atlanta: 3.6% ($602 increase)

source
MoveHub

Median rent: $1,394

Rent forecast in 2019: 3.2% ($45 more monthly)

Rent forecast with HQ2: 3.6% ($50 more monthly)


Austin: 1.5% ($303 increase)

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Wikimedia Commons

Median rent: $1,686

Rent forecast in 2019: 0.7% ($12 more monthly)

Rent forecast with HQ2: 1.5% ($25 more monthly)


Boston: 5% ($1,423 increase)

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Bill Damon/Flickr

Median rent: $2,371

Rent forecast in 2019: 3.6% ($85 more monthly)

Rent forecast with HQ2: 5% ($119 more monthly)


Chicago: -0.1% ($20 decrease)

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Shutterstock

Median rent: $1,653

Rent forecast in 2019: -0.2% ($3 less monthly)

Rent forecast with HQ2: -0.1% ($2 less monthly)


Columbus: 2.4% ($379 increase)

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Columbus, Ohio in 2017.
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f11photo/Shutterstock

Median rent: $1,317

Rent forecast in 2019: 1.1% ($14 more monthly)

Rent forecast with HQ2: 2.4% ($32 more monthly)


Dallas: 3.1% ($597 increase)

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f11photo/Shutterstock

Median rent: $1,606

Rent forecast in 2019: 2.3% ($37 more monthly)

Rent forecast with HQ2: 3.1% ($50 more monthly)


Denver: 5.9% ($1,449 increase)

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Shutterstock

Median rent: $2,047

Rent forecast in 2019: 3.6% ($74 more monthly)

Rent forecast with HQ2: 5.9% ($121 more monthly)


Indianapolis: -0.2% ($29 decrease)

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Sean Pavone/Shutterstock

Median rent: $1,208

Rent forecast in 2019: -0.2% ($2 less monthly)

Rent forecast with HQ2: -0.2% ($2 less monthly)


Los Angeles: 4.9% ($1,615 increase)

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Melpomene/Shutterstock

Median rent: $2,746

Rent forecast in 2019: 3% ($82 more monthly)

Rent forecast with HQ2: 4.9% ($135 more monthly)


Miami: 4.2% ($938 increase)

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Ramunas Bruzas/Shutterstock

Median rent: $1,862

Rent forecast in 2019: 2.5% ($47 more monthly)

Rent forecast with HQ2: 4.2% ($78 more monthly)


Nashville: 3.3% ($593 increase)

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Mark Skalny / Shutterstock.com

Median rent: $1,497

Rent forecast in 2019: 0.9% ($13 more monthly)

Rent forecast with HQ2: 3.3% ($49 more monthly)


New York: 0.7% ($202 increase)

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Courtesy of TripAdvisor

Median rent: $2,401

Rent forecast in 2019: -1% ($24 less monthly)

Rent forecast with HQ2: 0.7% ($17 more monthly)


Philadelphia: 0.8% ($152 increase)

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Sean Pavone/Shutterstock

Median rent: $1,579

Rent forecast in 2019: 0.4% ($6 more monthly)

Rent forecast with HQ2: 0.8% ($13 more monthly)


Pittsburgh: 2.9% ($370 increase)

source
MoveHub

Median rent: $1,063

Rent forecast in 2019: -0.1% ($11 less monthly)

Rent forecast with HQ2: 2.9% ($31 more monthly)


Raleigh: 4.3% ($741 increase)

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Sean Pavone/Shutterstock

Median rent: $1,436

Rent forecast in 2019: 2.4% ($34 more monthly)

Rent forecast with HQ2: 4.3% ($62 more monthly)


Washington: 1.1% ($283 increase)

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Orhan Cam/Shutterstock

Median rent: $2,146

Rent forecast in 2019: 0.5% ($11 more monthly)

Rent forecast with HQ2: 1.1% ($24 more monthly)


Toronto: 1.6% ($198 increase)

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Jérôme Decq/Getty

Median rent: $1,031

Rent forecast in 2019: 1.4% ($14 more monthly)

Rent forecast with HQ2: 1.6% ($16 more monthly)