Quick Note: the image is from the Moguldom article. Moguldom.com has a very interesting take on Amazon HQ2 coming to Atlanta and Stonecrest.
Jamarlin Martin wrote a very important article that looks into the “Tech Effect”, “Tesla Effect” and from what I can tell coined a new term the “Amazon Effect”.
Basically, it looked at the home values near Apple headquarters in the Tech Effect and homes near Apple appreciated at 18% a year, higher than the 11% or 12% for other nearby areas.
After the Gigafactory was announced in Nevada for Tesla, the city of Sparks saw real estate prices jump 42 percent, AKA, the Tesla Effect.
If the next Amazon headquarters in indeed in Atlanta than with 50,000 black homeowners in metro Atlanta with homes averaging $200K and you assume a 100% increase in value over the next decade it could represent an estimated gain of $10 billion. This is what was called the “Amazon Effect”. I am not sure of the 100% increase but considering the home values of $200K is much lower than the median home value of San Jose or San Francisco at $896K or $757K a 100% increase isn’t out of the impossible.
Considering not everyone in Atlanta lives in the city or inside the perimeter is it very possible that it brings up the overall average house value of the entire region. Part of the proposal and what would have to be done to get Amazon here and building HQ2 would be improving transportation and commuting.
Please click the link and read the original story, it is very interesting.