New company in area

[Kyle Carter]

Hello BiggerPockets community!

I would like to learn more about the impact of a big company moving to an area. Why does that impact the home values? I understand that of course that would bring higher paying jobs but how does that drive the housing prices up. For example, the housing in Raleigh went up by almost 40% after Apple announced they were building there. Why is that?

[Mitch Miller]

@Kyle Carter People hit on the obvious, hype and excitement of a large name company like apple moving to an area.  I live in Raleigh and can tell you that the 40% was not all apple.  Raleigh is in a flywheel effect.  More companies come, more people come, companies see more talent in Raleigh and move to Raleigh, people see more jobs in Raleigh and move to Raleigh. So on and so on. You are also seeing the covid bump in that 40%.  Apple has been quoted a ton in papers and every realtors says it to buyers etc. But for raleigh apple was not the only reason for the bump in prices.

Taking a step back tho some people already touched on it.  A lot of research and studies have come out around high paying jobs make large impacts.  Apple said it would move 3000 jobs with average salary of 187k.  Reports came out that impact would be 7x that.  those 3000 jobs would get coffee and need dry cleaners and cars repaired etc.  The impact of job growth in the market is something I always look at because of this 1 job is not just one job. I think investors see it the same way and invest that way too leading to bumps in prices if they start to see a trend.