Do you know what Arlington (Virginia), Seattle (Washington) and Nashville (Tennessee) have in common? Online sales giant Amazon has set up sites there and since then property prices have soared so much that now middle- and low-income families can no longer find a home.
To remedy this problem, Jeff Bezos' firm therefore wants to invest $ 2 billion to build and preserve inexpensive homes in these 3 cities, by 2026. To do this, Amazon will grant loans and lines of credit , and will subsidize various real estate projects in Arlington, Seattle and Nashville.
To carry out its project, Amazon obviously has the support of various associations, such as that of the defenders of affordable housing in Virginia. Ironically, after driving up the cost of real estate in these 3 cities over the years, Amazon has now decided to change the game.
Within 5 years, thousands of affordable housing units will be built
In a press release made last week, Amazon therefore announced the imminent establishment or preservation of 20,000 homes around the metropolitan areas of Seattle, Arlington and Nashville. These reasonably priced homes will be affordable for families earning 80% or less of the median wage, according to the giant.
Indeed, since the installation of Amazon in these 3 cities, the cost of real estate has skyrocketed. This has earned the company various particularly negative reviews. In defense, Catherine Buell, the firm's community development manager, told the Wall Street Journal that Amazon didn't think of an impact on the real estate market.
Following the announcement of this upcoming $ 2 billion investment, Jeff Bezos' company has secured the support of various housing assistance associations. For information, this is not the first time that Amazon has invested in the establishment of affordable housing in these same areas.
One way for Amazon to improve its image
For nearly two decades, Amazon's presence in Seattle has been keenly felt in the real estate industry. Moreover, in 2018, after the installation of its second headquarters in Arlington, the price of real estate, which was already high, climbed again.
Indeed, following the installation of Amazon 's HQ2 in Arlington, not even after six months, the cost of housing has increased by 18%. For example, while a single single family home is worth between $ 805,000 and $ 949,500 , the average rent is between $ 2,024 and $ 3,367. Which is just beyond the reach of low income and middle class families.
With this investment of 2 billion dollars, Nina Janopaul, CEO of APAH (Arlington Partnership for Affordable Housing), did not fail to congratulate Amazon.