The recent announcement by Amazon that it will create 3,000 new jobs in Boston continues a trend by technology and other companies of diversifying their geographic footprint. The move is an acknowledgement that, in today’s environment, companies see the need to shift recruiting practices to attract top talent. It also signals that tech sector employment is broadening well-beyond its West Coast roots, as evidenced by similar expansions in Austin, Northern Virginia, and Nashville. With remote work changing the housing landscape in 2020, companies are also recognizing that a decentralized workforce can work effectively and profitably.
The move signals an additional boost for Boston’s real estate markets, including commercial real estate and apartment rentals, which have experienced strong growth in 2020. The Seaport District has seen a dazzling renaissance over the past decade. However, the pandemic and remote work shift pushed vacancies into the double-digits. The new workforce will be good news for the office sector, as Amazon’s employees will be housed in a new office tower, which complements space leased in another office building nearing completion, where an additional 2,000 employees will be working.
Based on realtor.com real estate data, Boston housing was a leader in the recovery from the COVID quarantine, showing faster demand and pricing rebound than most other markets. As of the week of January 16, 2021, Boston, along with Portland, Las Vegas, Denver, and Los Angeles were in the top real estate markets showing the greatest recovery, driven by pick-up in buyer demand and bumps in seller activity over the previous week. During the week, Boston’s Housing Recovery Index value reached 115.