Amazon's decision to build one of its two new headquarters in Long Island City, New York, already has had one effect on the area — real estate. Just weeks after Amazon's announcement of the new site, potential residents are flocking to the community looking to buy into the already hot market.
Long Island City has become an alternative for home shoppers who can't afford homes in exorbitantly expensive Manhattan area or ever-popular Brooklyn. Young people, especially, have flocked to Long Island City, and that already has driven up prices.
One real estate analyst said this to CNBC:
"If any area in New York is poised for a major influx in residents, it's Long Island City," the analyst said, looking at a "building boom [that's] already remaking much of the area and where residents have been grappling with how to meet the demands of thousands of new people."
One local real estate agent said he submitted multiple offers on behalf of clients since the Amazon announcement. They are eager to find property before the influx of residents drives up prices. Most were clients who had been "lookers" before Amazon said it was coming to town. Now, they have become active buyers.
Buying a home can be a great investment, whether you plan to live in it or market it to tenants. It's a big decision, and one not to be taken lightly. Long Island City buyers seem to be in hurry-up mode, however, but they shouldn't cut corners and sign contracts without a review by a New York attorney experienced with such transactions.