News of the Amazon HQ2 in Long Island City sent buyer searches in the neighborhood through the roof.
This week’s announcement that Amazon will split its second headquarters between Long Island City in Queens and Crystal City in Northern Virginia has many forecasting the impact of the tech giant’s arrival on New York City. We looked at six things Amazon could mean for NYC real estate, and considered the eight NYC neighborhoods most likely to be affected.
As of today, some 20 sales listings on StreetEasy mention Amazon’s plans, touting that they’re “Perfect for our new Amazon HQ2 neighbors!” and offer “A one-stop commute to Long Island City, the new home of Amazon HQ2.”
With reports of a condo gold rush — some brokers say they’re selling units sight-unseen and via text message — we looked at the number of StreetEasy users suddenly interested in Long Island City real estate.
Buyer Searches in Long Island City Spiked in the Days After Amazon News Leaked
According to the latest StreetEasy search data, buyer interest in Long Island City spiked enormously since the news leaked Nov. 5 that Amazon was closely eyeing Long Island City.
- From Nov. 5 to Nov. 7, StreetEasy’s volume of buyer searches in Long Island City shot up 283 percent compared to same three days in the prior week (Oct. 29 to Oct. 31).
- After the news was confirmed by Amazon, buyer interest only grew, with a 519 percent increase in search traffic between Nov. 12 and Nov. 14, compared to the same levels the week before the news leaked (Oct. 29 to Oct. 31). See the chart below:
*Note: Not actual traffic numbers; Oct. 15 traffic indexed to 100.
StreetEasy Senior Economist Grant Long on What Amazon’s Plans in Long Island City Mean
Amazon’s move to Queens has the potential to produce a giant eastward shift in the economic geography of the city. With the sales market slowing elsewhere in New York, investors are moving quickly to place bets on Amazon reshaping western Queens. Those who may already have been considering a move to Long Island City are under more pressure now, ahead of the rise in prices likely to come amid heightened interest from those looking to make a quick buck.
Developers who have been building in the area over the past 15 years are likely to reap the biggest windfalls from the Amazon announcement. The company’s plans come after a long period of doubts over the city’s ability to absorb the huge number of new homes built since redevelopment of Long Island City began in the early 2000s.
The rental market on the eastern shore of the East River also remains saturated with high-end inventory, and will likely be slower to adjust to the planned influx of workers, but this news will be welcome to landlords eager to fill those glass towers. Homes in less-dense areas adjacent to Long Island City — such as Sunnyside, Astoria, and Greenpoint —are likely to see some of the largest uptick in demand in the long run.
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