Amazon’s (AMZN) surprise move to scrap plans to build out a headquarters in New York City has done little to impact the local housing market, according to a report Wednesday from the Federal Reserve.
“Residential rents across the District have picked up somewhat since the last report but remain roughly on par with a year earlier,” the Federal Reserve Bank of New York reported in the Fed’s latest Beige Book. “In New York City, the prevalence of landlord concessions appears to have receded somewhat and rents have risen modestly, as rental vacancy rates have remained low.”
“The recent withdrawal of Amazon’s planned expansion in northwestern Queens has reportedly had little effect on the area’s housing market,” the report read.
The New York Fed’s commentary was delivered in the central bank’s Beige Book, a compilation of anecdotes detailing current economic conditions across the 12 Federal Reserve Districts ahead of the Federal Open Market Committee’s (FOMC) March meeting.
Further commentary from the New York Fed pointed out that “commercial real estate markets have been mixed but little changed overall,” and that “both office availability rates and asking rents have remained steady, on balance” during the survey period.
Amazon on Valentine’s Day broke off its plans to build a new headquarters in Long Island City amid a flurry of opposition from some state and local officials and constituents.
The Long Island City condo sales market initially got a boost when the Seattle, Washington-based tech giant announced last fall that it had chosen the New York neighborhood for one of its new major hubs. But the surprise abandonment of these plans then led some to believe that buyers’ interest would wane and that asking prices in the area would temper as the tech giant backed out of development plans and took with it a potential 25,000 high-paying positions from the region.
Amazon still has approximately 2,000 existing tech workers in its New York tech hubs, based on company data from mid-February.