If you've come across this article, chances are that you've heard the buzz related to Amazon HQ2 in Long Island City (LIC). Amazon will be creating approximately 25,000 new jobs in LIC, which will be an economic boom to the neighborhood.
According to the New York Times, the average salary of Amazon's employees in LIC will be $150,000. That is an incredibly high number, which will also be reflective of their ability to afford luxury housing. Employees are expected to start showing up for work in early 2019. Staffing up 25,000 employees will not happen overnight, so expect a steady stream of new employees over the next several years.
The impact on real estate will be substantial. Over the next several years prices of condominiums in LIC will appreciate at an accelerated pace. Additionally, rents will also increase significantly, as the neighborhood's housing supply will fall significantly short of the demand. This leaves savvy investors with an opportunity to capture significant long-term upside from property appreciation, while at the same benefiting from increasing rents.
Amazon is one of the world's most influential companies. Having the opportunity to buy into a market in which the company will have direct influence over property valuations is an opportunity which won't repeat itself often.
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