TRENDS IN THE HOUSING MARKET – NOV 23, 2017
My Opinion: The American housing Crisis is Now getting started (Amerifornia) Watch and see what is happening all over the world ! and this middle class destruction will be in full force in America by 2020 ! As the USA catches up to the rest of the Commonwealth !
Toronto Real Estate Prices Roll Back, BC Now Home To The 3 Most Expensive Markets, Can the government save the middle-class wannabe homeowner in Toronto and Vancouver?, China to fend off bubble risk with tighter property rules, Why solving the UK housing crisis requires more than new homes, Analysis shows oversupply of housing in Australia, Ban on foreign home buyers in New Zealand should not affect resident expats,
Amazon headquarters could make Chicago’s housing crisis worse
Gov. Bruce Rauner and Mayor Rahm Emanuel are now offering $2.5 billion in taxpayer subsidies to Amazon if the giant corporation agrees to put a major office complex here.
I’m wondering why we aren’t getting $2.5 billion in Amazon stock in exchange for our investment, but perhaps I just don’t understand these things.
This is only the first round of Amazon’s public auction for its second headquarters, and our leaders have said they are prepared to offer more subsidies in subsequent rounds. What happens if we win?
One Seattle resident writes a cautionary tale in Politico. Having witnessed that city’s “transformation” as the online retail behemoth’s corporate headquarters grew there, the writer suspects “Amazon’s suitors may be laboring under some unrealistic expectations” by “overstating the benefits” of hosting the new headquarters, and “underestimating the impact that tens of thousands of young, well-paid ‘knowledge workers’ can have on local infrastructure, housing prices and even politics.”
Chicago already has a growing affordable housing crisis. Half of the city’s renters can’t afford their monthly housing costs – a far higher proportion than the national average. And when the Chicago Housing Authority opened its waiting lists three years ago, a quarter of Chicago households tried to get on it.
Still, it’s worse in Seattle. There, rents have risen 65 percent since 2009. The Seattle region is “in the midst of the greatest affordable housing and homelessness crisis that our state has ever seen,” Rachael Myers of the Washington Low-Income Housing Alliance told the Washington Post. Amazon “obviously impacts” the housing shortage, she said.
It’s tough for homeowners too. Seattle is the hottest real estate market in the nation, with home prices rising at more than twice the national rate. The median price of a home in Seattle is $729,000, and the price of “starter homes” has doubled in five years, typically eating up one-half of household income for first-time buyers. Prices keep climbing despite the fact that Seattle leads the nation in new-home construction.
Chicago’s housing market is different from Seattle’s, and Amazon’s impact would depend to some extent on which area of the city it chose to locate. But “obviously it would have an impact, and we have an opportunity to learn from Seattle’s experience,” said Geoff Smith, executive director of the Institute for Housing Studies at DePaul University.
Karen Lewis of the Chicago Teachers Union and other labor leaders have called on Amazon to sign a community benefits agreement that, among other things, would “create affordable housing units to offset those that will otherwise be lost.” They’re predicting that an Amazon complex would increase pressure on low-income residents in gentrifying areas, and that “residents in previously non-gentrified neighborhoods would face displacement.”