 Big Tech on the Block: Examining the Impact of Tech Campuses on Local Housing Markets in the San Francisco Bay AreaKaren Chapple and Jae Sik Jeon Economic Development Quarterly, 2021, vol. 35, issue 4, 351-369 Abstract: The rapid growth of tech company headquarters such as Apple, Facebook, and Google could potentially put new pressure on the housing market in adjacent residential neighborhoods, in the form of housing price appreciation and real estate speculation. This article examines the relationship between the big tech corporate campuses and Silicon Valley/San Francisco housing markets using the Zillow (ZTRAX) transaction and tax assessor data. The authors compare real estate activity adjacent to new company locations with activity in nearby areas, conducting a difference-in-differences analysis to estimate changes in housing prices and speculation. They find that housing prices increase overall by an additional 7.1% in the immediate vicinity of the tech campus 2 years after arrival, with wide variation across campuses. The authors also identify significant real estate speculation occurring prior to firms’ arrival. This suggests that cities should take a proactive role in mitigating tech firm impacts on vulnerable adjacent neighborhoods. Keywords: high tech; housing price appreciation; housing submarkets; tech campus (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:35:y:2021:i:4:p:351-369 DOI: 10.1177/08912424211036180 Access Statistics for this article More articles in Economic Development Quarterly |
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