Internet Age Boom Town Copes With Growing Pains

8 March 2007 - 11:00am

Cheap hydroelectric power helped Quincy, Washington -- population 5,300 -- hit the high-tech economy jackpot. But with land prices skyrocketing and local services taxed, might the boom be too much of a good thing?

"While much of the U.S. frets over a residential real-estate slump, this small farming town on Washington State's plains has the opposite worry: A boom-town economy is inflating housing prices.

Quincy has the Web to thank -- or to blame. The town's economic boom began with the arrival of three high-profile neighbors: Microsoft Corp., Yahoo Inc. and Intuit Inc. In 2006, the tech giants separately announced plans to build new computer-data centers here.

But while the new arrivals have brought prosperity, locals are beginning to wonder how to handle what may be too much of a good thing. Quincy is a town of 5,300 people and two traffic lights that, until now, has typically seen only one to four new homes built a year. Now, developers have filed plans for upwards of 1,000 new homes and a strip mall that would include a hotel and the town's first movie theater. Land prices have as much as quintupled over the past year and apartment rents have jumped as much as 50%."

Source: The Wall Street Journal, March 7, 2007
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At a much larger economic scale, however, one mustn’t avoid calculating the tremendous and exceptional externalities of automobile dependency.