In late 2017, Amazon started a search for a location to build their new headquarters in addition to their existing campus in Seattle. Amazon indicated they were looking for a metro area with more than one million residents, an abundance of transportation options and incentives from local governments. Amazon received bids for sites to build its new headquarters from over 200 cities. After cutting over 90 percent of the competition, Atlanta was made a finalist along with 19 other North American cities.
Atlanta has a good shot at claiming the bid for the new location. This rapidly growing city offers Amazon a presence on the East Coast, a transportation hub with major growth potential, a strong technology field that continues to grow, political incentives and economic long-term benefits. Atlanta also offers the talent from many local research universities such as Georgia Tech. However, Amazon’s potential location in the city opens up a window for change.
Atlanta has always been a city with relatively inexpensive property compared to other large metropolises. Amazon’s new headquarters means upwards of 50,000 jobs. The people who fill those jobs need housing. This opens up the real estate market for a rise in home prices. This is relatively good news for people who currently own their own property. However, this could hurt first-time homebuyers with the need for affordability. Low-end home prices will increase quicker than the wages of the people looking to purchase them. In Seattle where Amazon is currently located, home prices have climbed by 42 percent since 2013, according to Re/Max. It wouldn’t end at just home prices; renters would see a surge in rent prices, too.
Atlanta would also be forced to create new infrastructure to support such a large increase in population. As an incentive for Amazon to move to this southern city, the city has already promised upgrades to transportation. Plans have been made to turn the metro-Atlanta neighborhood “The Gulch” into a transportation facility that has the ability to connect buses, commuter trains and AMTRAK. Additionally, the new headquarters could potentially open up the need for more schools for the children of Amazon employees to attend.
Although Amazon brings some drastic effects to the economy, they still have a lot to offer. Winning the bid for their new offices would firmly cement a region’s place in the digital economy. In Atlanta, this is a great opportunity for college students as they would have more local job opportunities. Other companies would likely follow the same steps as Amazon and make investments in the winning city. Essentially, a winning bid would allow for a city to become a technology hub on a global scale.
