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

ShutterstockRental costs will rise in the city Amazon selects as the home of its second headquarters.
  • 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 $US49 more monthly on Nashville’s median rent of $US1,497.
  • Amazon’s second headquarters will drive up housing costs. In Los Angeles, rents would rise 4.9%, or $US52, on top of the expected increase of 3%, or $US82, for those paying the city’s median rent of $US2,746.

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 $US49 more monthly on Nashville’s median rent of $US1,497.

In Los Angeles, rents would rise 4.9%, or $US52, on top of the expected increase of 3%, or $US82, for those paying the city’s median rent of $US2,746.

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% ($US602 increase)

MoveHub

Median rent: $US1,394

Rent forecast in 2019: 3.2% ($US45 more monthly)

Rent forecast with HQ2: 3.6% ($US50 more monthly)


Austin: 1.5% ($US303 increase)

Wikimedia Commons

Median rent: $US1,686

Rent forecast in 2019: 0.7% ($US12 more monthly)

Rent forecast with HQ2: 1.5% ($US25 more monthly)


Boston: 5% ($US1,423 increase)

Median rent: $US2,371

Rent forecast in 2019: 3.6% ($US85 more monthly)

Rent forecast with HQ2: 5% ($US119 more monthly)


Chicago: -0.1% ($US20 decrease)

Shutterstock

Median rent: $US1,653

Rent forecast in 2019: -0.2% ($US3 less monthly)

Rent forecast with HQ2: -0.1% ($US2 less monthly)


Columbus: 2.4% ($US379 increase)

f11photo/ShutterstockColumbus, Ohio in 2017.

Median rent: $US1,317

Rent forecast in 2019: 1.1% ($US14 more monthly)

Rent forecast with HQ2: 2.4% ($US32 more monthly)


Dallas: 3.1% ($US597 increase)

f11photo/Shutterstock

Median rent: $US1,606

Rent forecast in 2019: 2.3% ($US37 more monthly)

Rent forecast with HQ2: 3.1% ($US50 more monthly)


Denver: 5.9% ($US1,449 increase)

Shutterstock

Median rent: $US2,047

Rent forecast in 2019: 3.6% ($US74 more monthly)

Rent forecast with HQ2: 5.9% ($US121 more monthly)


Indianapolis: -0.2% ($US29 decrease)

Median rent: $US1,208

Rent forecast in 2019: -0.2% ($US2 less monthly)

Rent forecast with HQ2: -0.2% ($US2 less monthly)


Los Angeles: 4.9% ($US1,615 increase)

Melpomene/Shutterstock

Median rent: $US2,746

Rent forecast in 2019: 3% ($US82 more monthly)

Rent forecast with HQ2: 4.9% ($US135 more monthly)


Miami: 4.2% ($US938 increase)

Ramunas Bruzas/Shutterstock

Median rent: $US1,862

Rent forecast in 2019: 2.5% ($US47 more monthly)

Rent forecast with HQ2: 4.2% ($US78 more monthly)


Nashville: 3.3% ($US593 increase)

Mark Skalny / Shutterstock.com

Median rent: $US1,497

Rent forecast in 2019: 0.9% ($US13 more monthly)

Rent forecast with HQ2: 3.3% ($US49 more monthly)


New York: 0.7% ($US202 increase)

Courtesy of TripAdvisor

Median rent: $US2,401

Rent forecast in 2019: -1% ($US24 less monthly)

Rent forecast with HQ2: 0.7% ($US17 more monthly)


Philadelphia: 0.8% ($US152 increase)

Sean Pavone/Shutterstock

Median rent: $US1,579

Rent forecast in 2019: 0.4% ($US6 more monthly)

Rent forecast with HQ2: 0.8% ($US13 more monthly)


Pittsburgh: 2.9% ($US370 increase)

MoveHub

Median rent: $US1,063

Rent forecast in 2019: -0.1% ($US11 less monthly)

Rent forecast with HQ2: 2.9% ($US31 more monthly)


Raleigh: 4.3% ($US741 increase)

Median rent: $US1,436

Rent forecast in 2019: 2.4% ($US34 more monthly)

Rent forecast with HQ2: 4.3% ($US62 more monthly)


Washington: 1.1% ($US283 increase)

Orhan Cam/Shutterstock

Median rent: $US2,146

Rent forecast in 2019: 0.5% ($US11 more monthly)

Rent forecast with HQ2: 1.1% ($US24 more monthly)


Toronto: 1.6% ($US198 increase)

Median rent: $US1,031

Rent forecast in 2019: 1.4% ($US14 more monthly)

Rent forecast with HQ2: 1.6% ($US16 more monthly)

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