Amazon will spend $2 billion to build affordable housing. How will this affect the surrounding housing prices?

As for Amazon's spending $2 billion to build affordable housing, Bian Xiao thinks that Amazon's approach is better, which can reduce the burden of some residents without housing, but the impact on surrounding housing prices will not be too great.

Characteristics of affordable housing First of all, before discussing this matter, we must first understand what is affordable housing. Affordable housing is to provide housing for some residents who have no housing. Residents without housing can rent affordable housing at a relatively low rent. Let them live more comfortably in this city without facing more pressure to buy a house. In addition, some affordable housing will be sold to those without housing at low prices. Although the price is far below the average market price, these affordable houses can only be occupied by themselves and cannot be subletted or sold, so generally speaking, affordable houses are only suitable for residents without houses. There is no question of wanting to invest or sublet.

The significance of affordable housing The significance of affordable housing is to enhance the happiness of local low-income residents. Take Shijiazhuang, Hebei as an example, the local average house price is around 14500 yuan. And the average price of affordable housing is only about seven or eight thousand. The price of affordable housing is only half that of commercial housing, so for residents who meet the conditions of purchasing affordable housing, the pressure on them to buy a house will be much less. But the main significance of affordable housing is to provide housing, so its living facilities and living environment are relatively general. Moreover, you're welcome to say that the overall quality of the residents of the affordable housing is relatively low, and the phenomenon of no public morality such as domestic garbage and spitting is quite common.

The impact of affordable housing When it comes to the impact of affordable housing on surrounding housing prices, Bian Xiao thinks there may be a greater negative impact. First of all, affordable housing has a high volume rate, high occupancy rate and many residents. This first determines that the traffic around the affordable housing is relatively congested. Residents living in other surrounding communities will encounter traffic jams every day. Moreover, as an affordable housing, its land acquisition cost is low, so many times the location of the land is not good, and there are relatively few supporting facilities such as surrounding hospitals and schools. The government will not make overall planning for affordable housing. However, because there are too many people living in affordable housing, Bian Xiao thinks that the prices of surrounding commercial housing are likely to rise, because the food, clothing, housing and transportation of so many people will definitely stimulate local consumption.

But in general, no matter what impact affordable housing has on the surrounding housing prices, its existence is meaningful, and Amazon Group's behavior of spending 2 billion to build a house is also worthy of recognition.