IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v71y2025i5p4344-4376.html
   My bibliography  Save this article

Corporate Relocation and Housing Market Spillovers

Author

Listed:
  • 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)

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.

Suggested Citation

  • Maggie (Rong) Hu & Desmond Tsang & Wayne Xinwei Wan, 2025. "Corporate Relocation and Housing Market Spillovers," Management Science, INFORMS, vol. 71(5), pages 4344-4376, May.
    • Handle: RePEc:inm:ormnsc:v:71:y:2025:i:5:p:4344-4376
    DOI: 10.1287/mnsc.2021.01819
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2021.01819
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2021.01819?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:71:y:2025:i:5:p:4344-4376. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.