Moving Up: Zicklin Prof Examines Effects of Corporate Relocation on Housing Prices
September 11, 2025Remember in the “before times,” when Amazon announced it would be opening a second corporate headquarters in Long Island City, Queens? (Spoiler alert: The company changed its mind.) The Zicklin School’s Maggie (Rong) Hu, PhD, wasn’t living in New York yet, but she took note of the headlines, excitement, and controversy that ensued.
“I noticed that while there was a lot of media attention, there wasn’t much comprehensive and hard evidence about what happens to the local community when a corporation decides to relocate there, especially from the housing market perspective,” says Dr. Hu, now an assistant professor in the William Newman Department of Real Estate. So, like a good real estate academic would, she did a deep dive into the data on corporate relocation.
The fruits of Hu’s labor now appear in an article entitled “Corporate Relocation and Housing Market Spillovers,” which was recently published in Management Science. She sat down with Zicklin News to talk about her research.
Zicklin News: You specifically wanted to study the effects on housing prices. It seems obvious they would go up. Did you and your co-authors ever have any doubt?
Hu: The point wasn’t so much to answer that question but to study the matter empirically, which hadn’t been done before. No one had done a comprehensive research analysis. Our research used SEC filings and Compustat data, which has all the publicly listed companies registered in the United States, to look at the entire picture of corporate relocation.
ZN: What did you find?
Hu: We found that corporate relocations can boost housing price growth rates by as much as 10 percent. This not only affects the new location of the moving-in headquarters, but also spreads into nearby communities and lasts for years. This is good news for homeowners, who see their property values rise, but not for renters and first-time buyers facing higher costs. In short, there are winners and losers in this situation.
ZN: Does the size of the corporation affect the change in real estate prices?
Hu: Definitely. With a larger company there are more employees and therefore more demand for housing. We did a heterogeneity analysis and determined that companies with larger total market values create a larger impact on the housing market.
ZN: Does this phenomenon increase pressure on local policymakers to create more housing?
Hu: Our research used pricing based on the existing housing stock, so future housing wasn’t considered, but this might be a good subject for a follow-up study. Thanks for the thought-provoking question!
ZN: Were there any surprises?
Hu: Two things surprised me. One, the anticipation effect: Prices start rising a full year before the relocation takes place and continue for two years afterward. Two, the range: The effect on real estate prices spreads over 15 miles from the headquarters site.
ZN: What are the implications for policymakers?
Hu: If a corporate relocation is coming, local policymakers can plan ahead by increasing the housing supply, investing in more affordable housing, and making sure local infrastructure keeps up. Without proper preparation, benefits can be overshadowed by a housing crisis.
We also recommend that the companies undergoing relocation consider supporting affordable housing funds and community development projects. If they’re getting tax benefits, they can use those to give back to the community and help soften the housing crunch.
ZN: What’s next for you?
Hu: This paper studied the residential market, and the sample period ends in 2017. Now I’m taking a deep dive into the effects of corporate relocation on commercial real estate, using CoStar data on office rental prices. I’m particularly interested to see the effects of the work-from-home trend we’ve seen since the pandemic.