Cash to spend: IPO wealth and house prices

Barney Hartman-Glaser, Mark Thibodeau, Jiro Yoshida

Research output: Contribution to journalArticlepeer-review


This study demonstrates the impact of initial public offerings (IPOs) on local house prices. Applying spatial difference-in-differences methods to IPOs in California from 1993 to 2017, we find house prices increase by 0.7%–0.9% near an IPO firm's headquarters around filing and issuing dates. Upon lockup expiration, price changes depend on postissuance returns. Treating the San Francisco Bay as a commuting barrier, we identify sustained price increases after filings and temporary increases after issuing and lockup expiration. We also confirm post-IPO price divergence between the treatment and synthetic control areas. Our findings indicate the effect of liquid wealth under mild financial constraints.

Original languageEnglish (US)
Pages (from-to)68-102
Number of pages35
JournalReal Estate Economics
Issue number1
StatePublished - Jan 2023

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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