- Every 10 Facebook employees living in a given census tract at the time of Facebook’s IPO in May 2012 were associated with an additional 1.6 percentage points of home value increase over that year.
- Between March 2012 and March 2013, home values around likely Facebook employees climbed 21 percent, compared to 17 percent in all other Bay Area census tracts.
- This faster growth translated into an extra $29,800 in appreciation for the typical home in these Facebook-employee-heavy areas compared to homes in the rest of the Bay Area.
Get ready for this year’s mega IPO jackpots! Seems like all of them are in SF?
Remember the satire article about home prices in Oakland skyrocketing while a Facebook employee walked down the street looking at them?
iPhone pushed up home prices around Cupertino in 2007!
Interestingly, we also found that the gap between the homes where Apple workers live and the homes where other San Jose-area workers live widened in summer 2007 – the same time as the release of the first-generation iPhone, a transformative product for Apple’s long-term corporate outlook. Comparing the average percent gap between the median home value of Apple-worker neighborhoods with the median home value of the entire San Jose metro area, the gap widened by 6.4 percentage points, to 20 percent, over the summer of 2007.
Nevertheless, homeowners who live in areas with a higher concentration of workers from companies planning IPOs should expect to see those corporate actions affect their home values, said Zillow director of economic research and outreach Skylar Olsen.