The National Association of Realtors commissioned a comprehensive study to assess how the rapid expansion of data center construction across the United States affects residential real estate markets. The research analyzed information from approximately 1,500 data center locations, property values, home sales rates, demographic data, and responses from over 2,300 realtors across various regions. Researchers found that while data center construction continues to accelerate nationwide, these facilities remain geographically concentrated in just 1% of the country.
The study revealed that data centers’ impacts on housing markets are highly localized and cannot be explained by a single national pattern. Northern Virginia hosts 319 mapped data centers, representing roughly 19% of U.S. facilities, while other significant hubs include Silicon Valley, central Ohio, central Washington state, and south Texas. By contrast, some states like Louisiana have minimal data center presence. Economists noted that regions attracting these facilities differ substantially in their economic foundations, market conditions, and reasons for development, leading to varied outcomes in property values and employment.
Many areas experiencing data center development already possessed stronger-than-average housing markets and higher-than-average income levels prior to facility construction. According to researchers, these economic advantages have remained relatively stable despite the presence of data centers. However, local real estate professionals reported that housing markets begin experiencing pressure well before construction projects reach completion, as workers relocate to support facility development and operations.
Abelene, Texas, exemplifies these dynamics as it prepares for the Stargate Project, a major $500 billion data center complex anticipated to become the nation’s largest. Local realtors documented significant housing market strain in the region, with median home prices rising from approximately $250,000 six years ago to about $342,000 currently. Some longtime residents have raised environmental and energy consumption concerns. Two additional large data center projects have already received approval for construction near the city.
The National Association of Realtors indicated plans to update the study regularly to track evolving impacts as data center construction continues accelerating across the country.
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