Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Rebecca Zisser/Axios

If Seattle is an example, Amazon's planned second headquarters could bring a housing crisis to the as-yet-unannounced city where it is built, pushing up home prices by as much as 30%, according to a new analysis.

Driving the news: Per the study, prices in Newark, which is predicted to see the greatest potential impact, could climb 33.5%. D.C., a leading HQ2 contender, could see a rise of 3.9%, and Boston, at the low end of projected impacts, could get a 0.4% bump.

The bottom line: Amazon HQ2 will take up 8 million square feet, employ up to 50,000 people and cost some $5 billion. A footprint of that scale will strain any city's infrastructure and trigger economic impacts that will reverberate for decades.

For a picture of how HQ2 will shake up housing markets, Mr. Cooper, a home loan and mortgage company, analyzed home price changes in Seattle after Amazon expanded its headquarters there in 2010. It attmpted to isolate Amazon’s influence from other factors — and the impact in Seattle hinted at what’s in store for the e-commerce giant’s second home.

As of now, 20 cities are finalists to host the complex. The analysis looked at the 18 that had adequate data from which to draw conclusions on home price bumps:

  • Newark: 33.5%
  • Raleigh: 27.2%
  • Phoenix: 12.1%
  • Indianapolis: 11.9%
  • Montgomery County, MD: 11.3%
  • Columbus: 10.4%
  • Austin: 9.9%
  • Dallas: 8.7%
  • Denver: 8.4%
  • Miami: 8.2%
  • Nashville: 6.6%
  • Philadelphia: 6.0%
  • Atlanta: 5.0%
  • New York City: 4.3%
  • Chicago: 4.1%
  • D.C.: 3.9%
  • Los Angeles: 3.9%
  • Boston: 0.4%

"Wherever Amazon goes, they're going to change that city landscape completely," says Alexander Lowry, a professor of financial analysis at Gordon College. Even in a city like Boston, where the report predicts only a slight price bump, the market is hot, he says.

Many of the bigger cities on Amazon's shortlist are already straining to provide affordable housing to residents, and the e-commerce giant moving in would shift the market further toward pricier homes, says Lowry.

  • "If you're lucky, and you've been there a long time, you can sell at a good price," but if you're a renter, you may be in trouble, he says.

But, but, but: Amazon has said it's determined not to do to its new home what it did to Seattle. By way of preparing HQ2 bids, "all of the cities have had to do some planning already," Lowry says. "Every city has some different problems, and they've all had to speak to those."

Go deeper

Updated 28 mins ago - Politics & Policy

Inauguration Day dashboard

Screenshot: Fox News

President Trump has delivered a farewell speech and departed Washington for the last time on Air Force One, kicking off the day that will culminate with President-elect Joe Biden taking office.

What's next: The inaugural celebration for young Americans is being livestreamed, starting at 10am.

Updated 44 mins ago - Politics & Policy

Trump departs on final Air Force One flight

President Trump and his family took off on Air Force One at 9 a.m. on Wednesday morning for the final time en route to Florida.

The big picture: Trump's final hours as president were punctuated by his decisions to snub his successor's inauguration and grant pardons to many of his allies who have been swept up in corruption scandals.

Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Janet Yellen said all the right things to reassure the markets

Illustration: Aïda Amer/Axios

Treasury Secretary nominee and former Fed chair Janet Yellen's confirmation hearing before the Senate Finance Committee on Tuesday showed markets just what they can expect from the administration of President-elect Joe Biden: more of what they got under President Trump — at least for now.

What it means: Investors and big companies reaped the benefits of ultralow U.S. interest rates and low taxes for most of Trump's term as well as significant increases in government spending, even before the coronavirus pandemic.