Corporate Relocation and Housing Market Spillovers

Maggie (Rong) Hu (), Desmond Tsang () and Wayne Xinwei Wan ()
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Maggie (Rong) Hu: Zicklin School of Business, Baruch College, City University of New York, New York, New York 10010
Desmond Tsang: School of Hotel and Tourism Management, Chinese University of Hong Kong, Shatin, Hong Kong
Wayne Xinwei Wan: Department of Banking and Finance, Monash University, Clayton, Victoria 3800, Australia

Management Science, 2025, vol. 71, issue 5, 4344-4376

Abstract: Using a comprehensive database of corporate relocation events in the United States from 1994 to 2017, 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 at zip code level leads to 10% higher housing price growth. We also document a temporal spillover effect whereby housing prices increase one year before the relocation and rise further until two years afterward and a significant spatial spillover effect of corporate relocation on nearby zip codes’ housing markets up to 15 miles. We show the positive spillover effect on housing price growth is more pronounced for relocating firms with larger employee sizes and economic bases. We further find local economic spillover and agglomeration economies associated with corporate relocation. Overall, our study indicates that corporate relocation exhibits a significant impact on the local housing market.

Keywords: corporate headquarters relocation; housing market; temporal spillover; spatial spillover; local economic spillover; agglomeration economies (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:71:y:2025:i:5:p:4344-4376

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