While many are quick to brush off warehouse workers as non-qualified buyers, we like to look at them a different way. In many parts of the country, these workers can buy homes," explained Ali Wolf, the Manager of Housing Economics at Meyers Research.
Costa Mesa, CA (PRWEB) August 09, 2017
Amazon is a major employer. On August 2nd, they held a career fair looking to hire an additional 50,000 workers. This is after two other announcements earlier this year highlighting tens of thousands of open positions. Amazon's expansion plans not only will create new employment opportunities, but also impact local housing markets.
“While many are quick to brush off warehouse workers as non-qualified buyers, we like to look at them a different way,” explained Ali Wolf, the Manager of Housing Economics at Meyers Research. She continued, “In Denver, for example, a warehouse worker makes $12.50 an hour, which is equal to $26,000 a year. In a dual income household, that could easily translate into a combined $52,000 a year. At a 44% debt-to-income ratio, this family can afford a home at $300,000 in Denver. While we don't directly attribute the success solely to Amazon, in the outskirts of town in Denver, there are townhomes that are selling lot hotcakes in that price range.”
In Portland, there's an opportunity to provide new homes in the move-up price range. The existing home market in Troutdale, the location of Amazon's first fulfillment center in Oregon, will serve as the feeder market for entry-level buyers. As the multiplier effect of the new employment flows through the submarket, the existing homeowners with equity will likely look to trade up.
About Meyers Research
Meyers Research, a Kennedy Wilson Company, combines experienced real estate and technology advisors with leading data to provide our clients with a clear perspective and a strategic path forward. Based in Beverly Hills, we are home to 80 experts in 10 offices across the country.