One Click HQ2 One Click HQ2 - Page 116

Exhibit 1: Relative Housing Cost Perspective HOUSING OPPORTUNITIES OC Housing Stock: Easily Accommodating 50K Employees... There is no shortage of press highlighting the shortage of coastal California’s housing supply. However, with an existing base of 1.1M total housing units (notably 20% more than King County), Orange County’s housing market can easily accommodate Amazon’s diverse and high-growth HQ2 workforce needs. 5 Specifically, an extremely conservative talent recruitment scenario (i.e., all 50,000 HQ2 employees are sourced outside Orange County and are thus considered new residents—unlikely given 20 the strength of the underlying talent pool) implies 33,000 6 new homes would need to be built to support HQ2. This is achievable: the county’s total housing stock has grown by ~3% over the last six years (35,000 homes), and the City of Irvine alone has a fully-entitled residential pipeline consisting of 20,000+ units. 7 Orange County—and specifically Irvine in partnership with Irvine Company— is well-planned for continued housing development in support of a growing population. ...Yet Development Committed to “Work-Life” Integration Irvine’s commitment to well-planned economic development is evident in the city’s consistent but balanced housing supply increases. While the Master Plan was designed for growth, accommodating Irvine’s rapid population increases has come without disruption to the city’s natural landscape or high-quality living standards. Cumulative housing supply in Irvine has increased by an impressive 20% since 2010 8 ; yet over the same time period, more than 20,000 acres of Irvine Ranch land was permanently preserved as open space. 9 Today, a full third of the city is permanently preserved. MEDIAN HOME PRICE ($000s) AVG. MONTHLY RENT ($) Source: CoreLogic (August 2017); Zillow (August 2017); Axiometrics(2Q17). Median home price data includes existing, new, and condo sales. Within the market there is variety in value, ranging from 20%+ discounts to median values in the cities of Rancho Santa Margarita and Aliso Viejo, each importantly only 5-10 miles from Irvine S p e c t r u m a n d a n est i m a te d 1 5 - 20 minute commute time, 10 to over $3M in Newport Coast, where premier “executive housing product” often features ocean an d canyon v i ews c h arac te r i sti c of Southern California’s unique topography. Importantly, roughly 10 cities in Orange County are within a 20-minute radius of Irvine Spectrum, with seven of these cities offering up to a 20% discount to the county median home price. Affordability— particularly for a high-wage employee making $100K / year—is accessible within a standard commuting range. OC For-Sale Landscape: Surprisingly Low Sticker Shock The mix of for-sale v. rental inventory in Orange County ́ɽ՝ԔԔ)ͥȁѼѡ͍ͥMѱ(ԔԔ ɕЁɥ)ɔ/Qɕѱ䁍ɅѼѡ()䁽Mѱ,ٕɅ(͍չЁѼѡȁ䁅ѥ镐)ѕ݅䁵ɭ́ ]Ё1M)Y䰁9܁eɬ)ɥ չMٕ䰀؁յ́̽ձѥɅѥĸఀ܁%٥ $() ѵЁɜ() ɕ1MI$ єѥ͕́ɅٕѥѼѡ%٥MմQՕ͑䁅Ѐ4(