DENVER – If Amazon selects Denver for its second headquarters rents in the city could go up even more, according to a new report.
The report from Apartment List says that the influx of Amazon workers could increase rent by 0.8 to 1.1 percent per year.
That’s on top of the average rent growth of 4.8 percent per year in Denver, according to the report.
Denver’s rents are already high because more jobs are being added than housing – that problem would become more severe.
Another issue would be the high-paid employees at Amazon. In Seattle, rent increases have outpaced almost all other American cities with the fastest growth rate in home prices across the country, the report says.
Overall, the report suggests that Amazon’s HQ2 would increase rents by an additional 8.8 percent over 10 years.
While Denver would see an increase, Apartment List estimates that smaller metros such as Raleigh, Pittsburgh, and Baltimore – also contenders from HQ2 – would see the highest increase in rent.
Colorado submitted eight potential sites to Amazon in hopes of bringing HQ2 to state on Wednesday. The state is not releasing the information in the bid to the public.
Earlier this week, sources said three sites have emerged as favorites in the proposal, but officials Wednesday said all eight sites are being marketed equally.
The three sites include land near Denver International Airport, U.S. 36 and Northwest Parkway, and along E-470 in Douglas County.