Corporate Relocation and Housing Market Spillover
67 Pages Posted: 19 Oct 2020 Last revised: 11 May 2021
Date Written: May 11, 2021
We investigate the impact of headquarters relocation on the local economy by examining its spillover effects on the housing market. We find that headquarters relocation into a district leads to 10% higher housing price growth in the district. Moreover, we document a temporal spillover effect as housing prices increase one year before the relocation and rise further until two years afterwards, and a spatial spillover effect on nearby districts’ housing markets of up to 15 miles. We further find agglomeration economies exacerbate the effect of corporate relocation on the housing market.
Keywords: Corporate Headquarters Relocation; Residential Housing Market; Temporal Spillover; Spatial Spillover; Agglomeration Economies
JEL Classification: D22, R30, R31
Suggested Citation: Suggested Citation