As data centers spread, not all U.S. housing markets react the same way
A new study by the National Association of Realtors found that data centers have varied impacts on U.S. housing markets. In Abilene, Texas, the ongoing Stargate Project and two approved data centers have led to a severe housing shortage and rising home prices, alongside environmental concerns from residents.
The National Association of Realtors (NAR) commissioned a first-of-its-kind study to evaluate the impact of data centers on U.S. housing markets, concluding that their effects differ significantly by location. Nadia Evangelou, principal economist for NAR, emphasized that data centers are not a monolithic category, with some regions experiencing economic growth while others face strain on energy supplies. The study analyzed data from approximately 1,500 data centers, property values, home sales, demographics, and a survey of over 2,300 realtors.
While data center construction is accelerating, their distribution remains concentrated in 1% of the country, with major hubs in Northern Virginia, Silicon Valley, Phoenix, Central Ohio, and Grant County, Washington. Realtor Steve Stovall of Abilene, Texas, highlighted the local impact of the massive "Stargate Project" data center, noting an influx of workers that has boosted revenue and commercial economy but caused a severe housing shortage and rising home prices. The median home price in Abilene has increased from $250,000 to $342,000 in six years. Residents have also voiced concerns about energy usage and environmental impacts, with two additional large data centers already approved for construction on the city's outskirts. NAR plans to publish an update to the study within six months.