'Amazon Effect' Could Increase Housing Prices In Boston
BOSTON (CBS) - Amazon and the possibility of its second headquarters coming to Boston is generating a lot of mixed reaction. People are quick to point out the potential downsides; traffic parking and price increases for rentals and home sales.
The so-called "Amazon Effect" could increase rent if the city is chosen. A recent study by the real-estate website Zillow found Boston's selection could boost rental prices by 1.4 percent, which would take the current median rent from $2,371 up to $2,490.
"It's important to always know where the businesses are coming in and who's coming in and the need," said Coldwell Banker Realtor Melinda Sarkis.
Related: Amazon Adds 2,000 Jobs To Boston
Sarkis has been keeping an eye on the potential of Amazon selecting Boston. She's not worried about rents skyrocketing because of the increasing access to apartments.
"There is a handful of new residential buildings that are coming up so I think it's going to open up and I think the prices may have to readjust," said Sarkis.
Boston Mayor Marty Walsh says 52,000 units are either already being build or are going through the permitting process, but he'd like to see more. The mayor says the city is working to keep it affordable for current and new residents.
"Our job is to make sure we continue to put more supply of housing on the market regardless of Amazon or not. We are working now we have an issue," said Mayor Walsh.
The mayor adds housing is more than just a Boston issue. He said a 14-community committee is in place to analyze the problem and is expected to release its goal next month.
It's still unclear when Amazon will be making its announcement for the HQ2.