Corporate Relocation and Housing Market Spillover

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.