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Professional sports facilities, teams and property values: Evidence from NBA team departures

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  • Humphreys, Brad R.
  • Nowak, Adam

Abstract

Professional sports teams and facilities can generate negative or positive amenities to be capitalized into nearby property prices. We investigate the effect of the departure of two National Basketball Association teams in Seattle and Charlotte on nearby residential property values. Both arenas continued to operate after the teams left, so these departures represents a natural experiment to identify the net effects of a sports team separately from the effect of a facility and other events that take place in the facility. Results from a repeat sale regression model and hedonic price model indicate that the departure of the teams was associated with excess appreciation of condo prices near Key Arena and single family home prices near the Charlotte Arena, suggesting that the teams generated disamenities in these markets.

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  • Humphreys, Brad R. & Nowak, Adam, 2017. "Professional sports facilities, teams and property values: Evidence from NBA team departures," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 39-51.
    • Handle: RePEc:eee:regeco:v:66:y:2017:i:c:p:39-51
    DOI: 10.1016/j.regsciurbeco.2017.06.001
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    Citations

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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. Sepulveda, Cristian F., 2023. "Cost–Benefit Analysis of an “Average” Professional Sports Team or Stadium in the United States," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 14(3), pages 451-477, October.
    3. Chikish, Yulia & Humphreys, Brad R. & Nowak, Adam, 2019. "Sports Arenas, Teams and Property Values: Temporary and Permanent Shocks to Local Amenity Flows," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 49(1), February.
    4. Jesse Burkhardt & Matthew Flyr, 2019. "The Effect Of Marijuana Dispensary Openings On Housing Prices," Contemporary Economic Policy, Western Economic Association International, vol. 37(3), pages 462-475, July.
    5. Li, Xiaoshu & Boyle, Kevin J. & Preisser, Evan L. & Holmes, Thomas P. & Orwig, David, 2022. "Property value effects of the Hemlock wooly adelgid infestation in New England, U.S.A," Ecological Economics, Elsevier, vol. 194(C).
    6. 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.
    7. Yulia Chikish & Brad R. Humphreys & Crocker H. Liu & Adam Nowak, 2017. "Professional Sports Events, Concerts, and Urban Place Based Policy: Evidence from the Staples Center," Working Papers 17-32, Department of Economics, West Virginia University.
    8. Janhuba, Radek, 2019. "Do victories and losses matter? Effects of football on life satisfaction," Journal of Economic Psychology, Elsevier, vol. 75(PB).
    9. Seung-Jin Han & Won-Jae Lee & So-Hee Kim & Sang-Hoon Yoon & Won Shick Ryu & Hyunwoong Pyun & Daehwan Kim, 2022. "Effects of the Olympic Announcement and the Actual Event on Property Values: The Case of the 2018 PyeongChang Winter Olympic Games," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    10. Zachary T. Keeler & Heather M. Stephens, 2023. "The capitalization of metro rail access in urban housing markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(3), pages 686-720, May.
    11. Geoffrey Propheter, 2023. "Sports Facilities as a Housing Amenity: Do Prices Follow Facilities?," Journal of Sports Economics, , vol. 24(4), pages 443-474, May.
    12. Geoffrey Propheter, 2021. "Sports facilities and the local property tax base in recovery," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1687-1701, October.
    13. Kathleen Grace & Joshua C. Hall, 2019. "The Value of Residential Community Associations: Evidence from South Carolina," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(1), pages 121-129, February.
    14. John Charles Bradbury, 2022. "The impact of sports stadiums on localized commercial activity: Evidence from a Business Improvement District," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 194-217, January.
    15. Aakrit Joshi & Brady P. Horn & Robert P. Berrens, 2020. "Major league soccer expansion and property values: do sports franchises generate amenities or disamenities?," Applied Economics, Taylor & Francis Journals, vol. 52(44), pages 4881-4899, September.

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    More about this item

    Keywords

    Repeat sales regression model; Property values; Professional sports; Local externalities;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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