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New Sports Facilities And Residential Housing Markets

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  • Anping Chen
  • Marlon Boarnet
  • Mark Partridge
  • Haifang Huang
  • Brad R. Humphreys

Abstract

type="main"> Using data from 56 professional sports facilities opened between 1995 and 2008, we find what at first appears to be a substantial effect of new sports facilities on housing markets. The opening of a new facility is associated with an increase in residential mortgage applications in nearby areas of about 20 percent. However, much of the differential is due to facility location. The new facilities locate in areas which grew faster even if they were not near a new facility. Based on regressions using census-tract level data, we find that conditioning on local income and poverty rates reduces the effect by more than a half, suggesting that characteristics of locations drive much the increase on mortgage applications associated with new sports facilities.

Suggested Citation

  • Anping Chen & Marlon Boarnet & Mark Partridge & Haifang Huang & Brad R. Humphreys, 2014. "New Sports Facilities And Residential Housing Markets," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 629-663, September.
    • Handle: RePEc:bla:jregsc:v:54:y:2014:i:4:p:629-663
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    Cited by:

    1. Brad R. Humphreys, 2023. "Professional Sports Subsidies and Urban Congestion Externalities: Assessing 50 Years of Failed Urban Economic Development Policies," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 49(4), pages 457-474, October.
    2. Jun-Kun Lin & Hung-Lung Lin & William Yu Chung Wang & Ching-Hui Chang & Chin-Tsai Lin, 2020. "An Evaluation Model for Property-Purchasing Plans Based on a Hybrid Multi-Criteria Decision-Making Model," Mathematics, MDPI, vol. 8(6), pages 1-18, May.
    3. Geoffrey Propheter, 2023. "Sports Facilities as a Housing Amenity: Do Prices Follow Facilities?," Journal of Sports Economics, , vol. 24(4), pages 443-474, May.
    4. Brad R. Humphreys & Hyunwoong Pyun, 2018. "Professional sporting events and traffic: Evidence from U.S. cities," Journal of Regional Science, Wiley Blackwell, vol. 58(5), pages 869-886, November.
    5. Zachary T. Keeler & Heather M. Stephens & Brad R. Humphreys, 2021. "The Amenity Value of Sports Facilities: Evidence From the Staples Center in Los Angeles," Journal of Sports Economics, , vol. 22(7), pages 799-822, October.
    6. Duane W. Rockerbie & Stephen T. Easton, 2019. "Of Bricks and Bats: New Stadiums, Talent Supply, and Team Performance in Major League Baseball," Journal of Sports Economics, , vol. 20(1), pages 3-24, January.
    7. Dongwoo Hyun, 2022. "Proud of, but too close: the negative externalities of a new sports stadium in an urban residential area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 615-633, June.
    8. Brad R. Humphreys & Geoffrey Propheter, "undated". "NFL Franchise Departures and Nearby Home Prices," Working Papers 24-05, Department of Economics, West Virginia University.
    9. Kaitlyn Harger & Brad R. Humphreys & Amanda Ross, 2016. "Do New Sports Facilities Attract New Businesses?," Journal of Sports Economics, , vol. 17(5), pages 483-500, June.
    10. Lucciano Testa & David Parra-Camacho & Ana María Gómez-Tafalla & Fernando Garcia-Pascual & Daniel Duclos-Bastías, 2023. "Local Impact of a Sports Centre: Effects on Future Intentions," Sustainability, MDPI, vol. 15(6), pages 1-15, March.
    11. Miriam Hortas-Rico, 2015. "Sprawl, Blight, And The Role Of Urban Containment Policies: Evidence From U.S. Cities," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 298-323, March.
    12. Geoffrey Propheter, 2019. "Estimating the Effect of Sports Facilities on Local Area Commercial Rents: Evidence From Brooklyn’s Barclays Center," Journal of Sports Economics, , vol. 20(1), pages 91-114, January.
    13. Propheter, Geoffrey, 2020. "The effect of a new sports facility on property development: Evidence from building permits and a localized synthetic control," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 50(1), December.
    14. Tsai, I-Chun, 2024. "A wise investment by urban governments: Evidence from intelligent sports facilities," Journal of Asian Economics, Elsevier, vol. 92(C).
    15. Rui Du & Junfu Zhang, 2022. "Super bowl participation and the local economy: Evidence from the stock market," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1513-1545, December.
    16. Huang, Haifang & Humphreys, Brad & Zhou, Li, 2014. "Urban Casinos and Local Housing Markets: Evidence from the US," Working Papers 2014-4, University of Alberta, Department of Economics.

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