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How Big Corporations Impact Residential Real Estate

by Team Bowers 03/08/2020

 Photo by Juhasz Imre from Pexels

Major corporations can change nearly everything about their surrounding areas and their effect on residential real estate can be truly substantial. The concentration of wealth in areas like Silicon Valley and Seattle has influenced even the most basic properties, causing otherwise unremarkable homes to be worth over a million dollars based on their location alone. We'll look at the patterns of residential real estate from the past and the predictions of the future. 

The Boom & Cool 

Much like the stock market, there's a flurry of activity in the real estate market when anticipation is in the air. Just the announcements that Amazon's HQ2 would be in Long Island City caused a major influx in properties both in and around the area. But the long-term effects for real estate aren't quite as extreme. 

Once Amazon switched their allegiance to Arlington, the value of the Long Island City cooled back down to its original levels. Even in the D.C. area, the effects have been moderate. After a year, Arlington saw some increases in value for homes near the future campus, but its mid-2030s arrival is causing some degree of hesitation for owners and developers. 

The Steady Rise 

The areas that see a steady climb are typically those that bring in a stream of businesses. These cities and towns attract diverse populations who contribute their talents and create a personality that others want to be a part of. Los Angeles made headlines for becoming its own haven for tech talent, creating the so-called Silicon Beach that spans through Santa Monica, Hermosa and Venice.

Google, YouTube, Snap, Inc. and Hulu are just a few corporations with offices in Silicon Beach. With San Francisco pricing even successful companies out of the market, the demand for luxury real estate in the LA area has increased due to the influx of well-paid engineers, developers and leaders. 

A single industry, such as oil or tech, can quickly raise the average salary to epic proportions. In Gillette, WY, a city dominated by fossil fuels, the average cost of a home increased from $236,978 to $272,100 over the course of just 7 years. So while Arlington may not have seen the immediate jump they were looking for, it may only be a matter of time. 

You can see prices being pushed up all over the country due to corporate investment. From Boston to Miami, it starts with the areas directly surrounding the area of the business before being pushed out to the suburbs and beyond. 

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Team Bowers

1. Bowers Realty has the largest selection of “Hot Properties”.
Most buyers prefer to look at “Hot Properties” instead of” leftovers. “That’s why buyers want to have early access to new listings (“Hot Properties”) within a few hours (or minutes) after they “hit” the market. Since one out of every ten new listings in the Detroit Metro Area is a Bowers Realty listing, buyers with a Bowers Realty agent have first choice at selecting from the largest selection of “Hot Properties” available in the Detroit Metro Area.

 

2. Bowers Realty offers you a more experienced team.
For something as important and as complicated as purchasing a home, most buyers desire a company with an experienced team of Realtors to assist them. Bowers Realty has over 40 years in the real estate business.

 

3. Bowers Realty puts its customers first. YOU get first choice.
Bowers Realty’s policy requires all of its listings be offered to its customers FIRST? Bowers Realty agents are not allowed to purchase their listings for investment purposes until those li stings have been offered to our customers for at least three days. You’ve heard that complaint, “Well, all the hot properties are snapped up by the real estate people.” At Bowers Realty, YOU get the first choice.

  

4. Bowers Realty increases your odds of closing on time.
You have found your dream home, negotiated the contract, and are making plans to move. You have scheduled the movers, time off from work, family and friends to help you move, day ca re for the kids, and all the details. Now, after all your hard work, what are the odds of your contract closing on time? In the Detroit Metro Area market. your odds are less than 50/50 that your contract will close on time. If you are working with a Bowers Realty agent, your odds increase over 90%. Last year Bowers Realty closed 90% of 300 contracts ON TIME!

  

5. Bowers Realty depends on YOU, “The Satisfied Customer”.
Bowers Realty is owned and managed by Darralyn C. Bowers. Mrs. Bowers has made a substantial investment in Bowers Realty and our community. She makes sure her staff is well trained. She impresses on all her Realtors that their future success is dependent upon YOU, “The Satisfied Customer.”