CoreLogic: Most Cities Shortlisted for Amazon’s Second Headquarters Are Already “Hot” Housing Markets

Real Estate Industry and Trade Media

Bill Campbell
Campbell Lewis Communications
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Alyson Austin
Corporate Communications
CoreLogic
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January 18, 2018, Irvine, Calif. –

—More Than Half of Potential Cities Have “Overvalued” Housing Markets—

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today revealed its analysis of the housing economy in cities* being considered for Amazon’s “second headquarters” location.

CoreLogic monitors the health of the housing economy through historic home price changes and other market conditions including sustainability of prices in the market, referred to as the CoreLogic Market Condition Indicators (MCI). The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent higher than the long-term, sustainable level, while an undervalued housing market is one in which home prices are at least 10 percent below the sustainable level.

 

City or Region

 

CoreLogic HPI YOY

 

CoreLogic MCI

Atlanta, GA

6.26%

Normal

Austin, TX

4.82%

Overvalued

Boston, MA

6.66%

Normal

Chicago, IL

3.65%

Normal

Columbus, OH

7.44%

Normal

Dallas, TX

6.39%

Overvalued

Denver, CO

8.12%

Overvalued

Indianapolis, IN

5.47%

Undervalued

Los Angeles, CA

7.46%

Overvalued

Miami, FL

3.72%

Overvalued

Montgomery County, MD

2.78%

Overvalued

Nashville, TN

8.17%

Overvalued

Newark, NJ

2.60%

Normal

New York City, NY

3.32%

Overvalued

Northern Virginia, VA

3.68%

Overvalued

Philadelphia, PA

6.26%

Normal

Pittsburgh, PA

2.11%

Undervalued

Raleigh, NC

4.81%

Normal

Toronto, ON*

N/A

N/A

Washington D.C.

3.68%

Overvalued

Source: CoreLogic, November 2017

*CoreLogic does not monitor the Toronto, Canada market

“As leaders at Amazon continue to narrow their location choices, the housing situation is an important consideration,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Some of the contenders have home price increases that are trending higher than the national average of 6 percent. Denver and Nashville lead the pack with home price increases at more that 8 percent, but CoreLogic research indicates that these markets are overvalued right now. Adding a job creator like Amazon would add further housing demand and upward pressure to housing costs.”

About CoreLogic

CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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