The job growth and presumably high incomes of aerospace giants like Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin have the potential to increase average median property prices around their hubs in the regions in the long run. South and West, according to the National Association. real estate agents.
“If, for example, a large tech company decides to open another headquarters with high income jobs, the region will experience significant home price growth,” NAR chief economist Lawrence told FOX Business. Yun. “Given that SpaceX and Blue Origin employees have sophisticated high-tech skills with likely high incomes, the affected small community real estate market will clearly benefit.”
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SpaceX, founded in 2002, broke new ground in Cameron County, Texas, at its Boca Chica launch site in September 2014, according to Space.com. In April 2019, the Brownsville, Texas-based facility began testing the company’s Starship vehicle, which seeks to ferry passengers to Mars as early as 2024. SpaceX also leased a launch pad at Vandenberg Air Force Base. in Santa Barbara County, California. .
Blue Origin, founded in 2000, conducted the first flight test of its New Shepard program since its Launch Site One facility in Van Horn, Texas, Culberson County in November 2006. Blue Origin is scheduled to complete its first crewed mission July 20 with Bezos. himself on board.
Other sites that SpaceX and Blue Origin have used in recent years include the Kennedy Space Center and the Cape Canaveral Space Force Station in Brevard County, Florida.
SpaceX’s website currently has more than 100 temporary and full-time job offers located in Brownsville, 28 full-time jobs to Vandenberg and 38 full-time and temporary positions at Cape Canaveral. Musk issued an open invitation in March to anyone interested in joining the SpaceX team in Lone Star State, noting that the area “is expected to grow by several thousand over the next two years.” Blue Origin has 55 openings in Merritt Island, Florida and 12 openings in Van Horn, Texas.
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Virgin Galactic, founded in 2004, also stepped up testing of suborbital spaceflight at Mojave Air and Space Port in Kern County, Calif., Which officially became a spaceport that same year, and at Spaceport America in the county. de Sierra, New Mexico, which conducted its first official launch in September 2006.
Virgin Galactic completed its first full crew test flight, dubbed Unity 22, on Sunday with founder Richard Branson on board. The company has nearly 100 job offers in Mojave, California and 35 openings in Las Cruces, New Mexico.
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The Census Bureau, which tracks house prices dating back to 1963, notes that the average median selling price of single-family homes in 1990 was $ 99,000 in the South and $ 147,500 in the West. In 2000, these average median selling prices reached $ 148,000 and $ 196,400, respectively. Fast forward to 2020, and average median selling prices have reached $ 299,000 in the South and $ 412,600 in the West.
According to Map of median house prices in NAR in 2021, Cameron County has a median home price of $ 96,055, up 4% year on year, the median Santa Barbara County home price of $ 630,442, down 1.7% year on year , Brevard County has a median home price of $ 252,790, up 7.9% year-over-year, Sierra County has a median home price of $125,677, up 4.5% year-over-year and Kern County has a median house price of $ 261,394, up 9.8% year-over-year.
the Housing price index map of the Federal Housing Finance Agency shows that real estate prices in Cameron and Santa Barbara counties increased by 51% and 108% between 2000 and 2020, respectively, and by 5% and 2.1% between 2019 and 2020. As for the county of Sierra, New Mexico and Kern County, Calif., Map shows house price increases of 80% and 114%, respectively, between 2000 and 2020, and increases of 12.2% and 6.1 % between 2019 and 2020. Meanwhile, Brevard County, Florida increased 128% between 2000 and 2020 and 6.4% between 2019 and 2020.
Although the FHFA map does not provide data for Culberson County, the Census Bureau notes that the median value of his property was $ 32,500 in 2000. In 2021, Culberson County has a median home price of $ 67,135, according to NAR, an increase of 11.7% year-over-year.
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Although Yun recognizes the potential long-term benefits of space enterprise centers in their local housing markets, he pointed out that these small communities have an easier time building houses and meeting increased demand, unlike large cities. .
“Therefore, house prices in the area will not necessarily experience a sudden increase, even if home builders build more large and expensive houses in the outlying areas,” Yun said.
Redfin chief economist Daryl Fairweather told FOX Business that the abundance of land surrounding SpaceX, Virgin Galactic and Blue Origin hubs will likely allow house prices to remain relatively stable even as the high income population around. of them increases.
“More land means there is room to add more housing stock, which will temper price growth,” Fairweather said.
The unadjusted median selling price of homes sold in the United States currently stands at $ 347,500 in the first quarter of 2021, just below its record high of $ 358,700 in the previous quarter, according to data shared by the Federal Reserve of Saint-Louis.