Welcome to the Neighborhood, Tech

Casual empiricism suggests that the arrival of a major technology company into an area has the ability to transform the local economy. I examine the economic impact on residential real estate rental prices by the opening of offices by four of the top technology companies—Apple, Facebook, Google, and Microsoft. Rents are about 2.8% lower in metropolitan areas with top technology company presence compared to metropolitan areas without top technology company presence. Taking this economic outcome into account may influence the public and policymakers’ willingness to give tax breaks and other incentives to attract major technology companies