Corporate Relocation and Housing Market Spillover

67 Pages Posted: 19 Oct 2020 Last revised: 11 May 2021

See all articles by Maggie Hu

Maggie Hu

The Chinese University of Hong Kong

Desmond Tsang

McGill University - Desautels Faculty of Management

Wayne Xinwei Wan

University of Cambridge - Department of Land Economy

Date Written: May 11, 2021

Abstract

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

Hu, Maggie and Tsang, Desmond and Wan, Wayne Xinwei, Corporate Relocation and Housing Market Spillover (May 11, 2021). Available at SSRN: https://ssrn.com/abstract=3683630 or http://dx.doi.org/10.2139/ssrn.3683630

Maggie Hu

The Chinese University of Hong Kong ( email )

Cheng Yu Tung Building
12 Chak Cheung Street
Hong Kong, N.T.
Hong Kong

HOME PAGE: http://sites.google.com/site/maggiehuresearch/research

Desmond Tsang

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

Wayne Xinwei Wan (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

HOME PAGE: http://xinweiwan.weebly.com

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