What Will Amazons HQ2 Do To SoCal Housing Crisis
While Amazon's choice of location for its second headquarters will positively impact the economy of any city they choose, it also brings about the question - what's going to happen to the already tight housing market in Southern California if they choose LA?
With the lowest levels of inventory the area has seen in some time, it's slim picking for buyers. With a surge in population growth with Amazon employees, not to mention the relocation of several NFL teams like the Chargers who planted their feet in Costa Mesa, it's a wonder what would happen next.
Economist Christopher Thornberg said that leaders in LA county are panicked. Plopping 50,000 tech employees in the middle of this housing crisis isn't exactly going to alleviate the situation. Though it may lead to more building, plans for new development and additional construction are not enough to offset the demand.
California Association of Realtors report showed that the state's supply of homes has hit its lowest point in 13 years! We're already one million housing units below demand and, with the imminent changes bringing more people to this beloved state, it's expected that deficit could grow to 2 million in just the next 8 years. As a result, this constrained supply is driving up prices to new highs.