Why you should care that Northrop Grumman is coming to DC region
March 3rd, 2010 | Author Lindsay Dreyer, Realtor
You may not see any reason to celebrate the news that huge military contractor Northrop Grumman will soon be moving to the DC area. After all, the company makes giant airplanes. What does that have to do with you?
Turns out, it might have a lot to do with you if you own a home in the DC region.
I’m always telling people that housing in the District is a great investment. Even during the long recession, housing values here, while they did fall, did not slip by nearly as much as they did in other major U.S. cities. A big part of the reason is the relatively low unemployment rate in the District and its surrounding areas.
This rate is so low because the District is home to such a wide variety of employers. There is plenty of government work here, of course. But there are also opportunities in the financial sector, healthcare, education, the sciences and so many other fields. According to a story in the New York Times, which you can read here (http://www.nytimes.com/2010/02/24/realestate/commercial/24grumman.html), Northrop Grumman will be moving its headquarters to the region after 72 years in Los Angeles. The jobs that this move entails won’t be high in number. But the fact that such a major company is moving here speaks volumes about the attractiveness of our region.
And when people want to live in an area, home prices generally are strong.
According to the Times story, Grumman is considering five locations in Virginia, three in Maryland and two in DC. The company needs from 150,000 to 200,000 square feet.
Grumman already has a significant presence in the area, with 40,000 employees in Virginia, 20,000 in Maryland and 100 in DC. It is also one of the few big companies to enjoy a busy year in 2009, when it made $33.8 billion in sales, according to the Times story.
So next time you read about a major company considering the DC region for its headquarters, make sure to pay attention. It could be just one more piece of the puzzle when it comes to keeping the local housing market so strong.
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