Amazon boosts local economies by raising wages and home values
- Amazon's expansion has been linked to increased wages and employment in local metro areas.
- The established warehouses contribute to a rise in home values and rental prices.
- Overall, the presence of Amazon may yield net positive economic effects despite criticisms.
In the United States, Amazon has expanded rapidly since 2010, growing from a few warehouses to over 1,300 fulfillment centers. This substantial growth has led to notable economic changes in the metro areas where Amazon establishes its locations. A study conducted by Evan Cunningham, a Ph.D candidate in Economics at the University of Minnesota, found that Amazon's presence in a region has resulted in increased wages, job opportunities, and enhanced home values. Specifically, average home values rose by 5.6%, and rents increased by 1.1% following Amazon's establishment in a community. This shift in employment patterns indicates a transition from retail and wholesale jobs to warehousing and tradeable service jobs, with non-college workers in particular benefiting from these changes. Additionally, utility costs appear to rise, with a noted increase of 6.0%.