[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/25003.html
   My bibliography  Save this paper

Form or Function? The Impact of New Football Stadia on Property Prices in London

Author

Listed:
  • Ahlfeldt, Gabriel M.
  • Georgios, Kavetsos
Abstract
This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade – the This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade – the New Wembley and the Emirates stadium in London, UK. Evidence suggests positive stadium externalities, which are large compared to construction costs. Notable anticipation effects are found immediately following the announcement of the final stadium plans. Our results emphasize the role stadium architecture plays in promoting positive spillovers to the neighbourhood. We therefore recommend public funding of large-scale sports facilities to be made conditional on a comprehensive urban design strategy that maximizes the external benefits.

Suggested Citation

  • Ahlfeldt, Gabriel M. & Georgios, Kavetsos, 2010. "Form or Function? The Impact of New Football Stadia on Property Prices in London," MPRA Paper 25003, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25003
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/25003/1/MPRA_paper_25003.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
    2. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Impact of sports arenas on land values: evidence from Berlin," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 205-227, April.
    3. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    4. J. Tomkins & N. Topham & J. Twomey & R. Ward, 1998. "Noise versus Access: The Impact of an Airport in an Urban Property Market," Urban Studies, Urban Studies Journal Limited, vol. 35(2), pages 243-258, February.
    5. Carlino, Gerald & Coulson, N. Edward, 2004. "Compensating differentials and the social benefits of the NFL," Journal of Urban Economics, Elsevier, vol. 56(1), pages 25-50, July.
    6. Leslie Sklair, 2005. "The Transnational Capitalist Class and Contemporary Architecture in Globalizing Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(3), pages 485-500, September.
    7. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    8. Carolyn A. Dehring & Craig A. Depken & Michael R. Ward, 2007. "The Impact Of Stadium Announcements On Residential Property Values: Evidence From A Natural Experiment In Dallas‐Fort Worth," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 627-638, October.
    9. Gabriel Ahlfeldt & Wolfgang Maennig, 2009. "Arenas, Arena Architecture and the Impact on Location Desirability: The Case of `Olympic Arenas' in Prenzlauer Berg, Berlin," Urban Studies, Urban Studies Journal Limited, vol. 46(7), pages 1343-1362, June.
    10. Xia Feng & Brad R. Humphreys, 2008. "Assessing the Economic Impact of Sports Facilities on Residential Property Values: A Spatial Hedonic Approach," Working Papers 0812, International Association of Sports Economists;North American Association of Sports Economists.
    11. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
    12. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2011. "Beautiful Places: The Role of Perceived Aesthetic Beauty in Community Satisfaction," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 33-48.
    13. Steve Gibbons, 2004. "The Costs of Urban Property Crime," Economic Journal, Royal Economic Society, vol. 114(499), pages 441-463, November.
    14. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Stadium Architecture and Urban Development from the Perspective of Urban Economics," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 629-646, September.
    15. Gabriel M. Ahlfeldt, 2011. "The Train has Left the Station: Do Markets Value Intracity Access to Intercity Rail Connections?," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 312-335, August.
    16. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    17. Kavetsos, Georgios & Szymanski, Stefan, 2010. "National well-being and international sports events," Journal of Economic Psychology, Elsevier, vol. 31(2), pages 158-171, April.
    18. Katherine A. Kiel & Victor A. Matheson & Christopher Sullivan, 2023. "The Effect of Sports Franchises on Property Values: The Role of Owners Versus Renters," Sports Economics, Management, and Policy, in: Victor A. Matheson & Robert Baumann (ed.), The Economic Impact of Sports Facilities, Franchises, and Events, pages 157-170, Springer.
    19. Carlino, Gerald & Coulson, N. Edward, 2006. "Compensating differentials and the social benefit of the NFL: Reply," Journal of Urban Economics, Elsevier, vol. 60(1), pages 132-138, July.
    20. Coates, Dennis & Humphreys, Brad R., 2006. "Proximity benefits and voting on stadium and arena subsidies," Journal of Urban Economics, Elsevier, vol. 59(2), pages 285-299, March.
    21. Ahlfeldt, Gabriel M., 2011. "Blessing or curse? Appreciation, amenities and resistance to urban renewal," Regional Science and Urban Economics, Elsevier, vol. 41(1), pages 32-45, January.
    22. Coates, Dennis & Humphreys, Brad R. & Zimbalist, Andrew, 2006. "Compensating differentials and the social benefits of the NFL: A comment," Journal of Urban Economics, Elsevier, vol. 60(1), pages 124-131, July.
    23. Georgios Kavetsos, 2012. "The Impact of the London Olympics Announcement on Property Prices," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1453-1470, May.
    24. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
    25. Charles C. Tu, 2005. "How Does a New Sports Stadium Affect Housing Values? The Case of FedEx Field," Land Economics, University of Wisconsin Press, vol. 81(3).
    26. Daniel P. McMillen & John McDonald, 2004. "Reaction of House Prices to a New Rapid Transit Line: Chicago's Midway Line, 1983–1999," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(3), pages 463-486, September.
    27. Stephen Gibbons & Stephen Machin, 2008. "Valuing school quality, better transport, and lower crime: evidence from house prices," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(1), pages 99-119, spring.
    28. Mingche M. Li & H. James Brown, 1980. "Micro-Neighborhood Externalities and Hedonic Housing Prices," Land Economics, University of Wisconsin Press, vol. 56(2), pages 125-141.
    29. Gabriel M. Ahlfeldt & Wolfgang Maennig, 2010. "Substitutability and Complementarity of Urban Amenities: External Effects of Built Heritage in Berlin," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 285-323, June.
    30. Stephen Gibbons & Stephen Machin, 2006. "Paying for Primary Schools: Admission Constraints, School Popularity or Congestion?," Economic Journal, Royal Economic Society, vol. 116(510), pages 77-92, March.
    31. Dennis Coates & Brad Humphreys, 2003. "Voting on Stadium and Arena Subsidies," UMBC Economics Department Working Papers 03-105, UMBC Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haifang Huang & Brad R. Humphreys & Li Zhou, 2018. "Do urban casinos affect nearby neighbourhoods? Evidence from Canada," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 757-784, August.
    2. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2014. "Form or function?: the effect of new sports stadia on property prices in London," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(1), pages 169-190, January.
    3. Gabriel M. Ahlfeldt & Nancy Holman, 2018. "Distinctively Different: A New Approach to Valuing Architectural Amenities," Economic Journal, Royal Economic Society, vol. 128(608), pages 1-33, February.
    4. Gabriel Ahlfeldt & Pantelis Koutroumpis & Tommaso Valletti, 2017. "Speed 2.0: Evaluating Access to Universal Digital Highways," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 586-625.
    5. Gabriel M. Ahlfeldt & Wolfgang Maennig & Michaela …lschläger, 2012. "Support For and Resistance Against Large Stadiums: The Role of Lifestyle and Other Socio-economic Factors," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 7, Edward Elgar Publishing.
    6. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2013. "Urban Renewal after the Berlin Wall," Working Papers 049, Chair for Economic Policy, University of Hamburg.
    7. Felix Richter, 2014. "Winner Picking in Urban Revitalization Policies: Empirical Evidence from Berlin," ERSA conference papers ersa14p1424, European Regional Science Association.
    8. 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.
    9. Huang, Haifang & Humphreys, Brad, 2012. "Do New Sports Facilities Revitalize Urban Neighborhoods? Evidence from Residential Mortgage Applications," Working Papers 2012-5, University of Alberta, Department of Economics.
    10. Ahfeldt, Gabriel M., 2013. "Urbanity," LSE Research Online Documents on Economics 59244, London School of Economics and Political Science, LSE Library.
    11. Gabriel M. Ahfeldt & Alexandra Mastro, 2011. "Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois," SERC Discussion Papers 0084, Centre for Economic Performance, LSE.
    12. Brad R. Humphreys & Adam Nowak, 2015. "Professional Sports Facilities, Teams and Property Values: Evidence from Seattle's Key Arena," Working Papers 15-06, Department of Economics, West Virginia University.
    13. Gabriel Ahlfeldt, 2013. "Urbanity," CESifo Working Paper Series 4533, CESifo.
    14. Gabriel Ahlfeldt & Alexandra Mastro, 2012. "Valuing Iconic Design: Frank Lloyd Wright Architecture in Oak Park, Illinois," Housing Studies, Taylor & Francis Journals, vol. 27(8), pages 1079-1099, November.
    15. Janhuba, Radek, 2019. "Do victories and losses matter? Effects of football on life satisfaction," Journal of Economic Psychology, Elsevier, vol. 75(PB).
    16. Gabriel M. Ahfeldt, 2013. "Urbanity," SERC Discussion Papers 0136, Centre for Economic Performance, LSE.
    17. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2014. "Form or function?: the effect of new sports stadia on property prices in London," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(1), pages 169-190, January.
    2. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2012. "Outlook, Progress and Challenges of Stadium Evaluation," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 17, Edward Elgar Publishing.
    3. Georgios Kavetsos, 2012. "The Impact of the London Olympics Announcement on Property Prices," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1453-1470, May.
    4. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2013. "Should I wish on a stadium? Measuring the average effect on the treated," Chapters, in: Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), The Econometrics of Sport, chapter 11, pages 189-201, Edward Elgar Publishing.
    5. Hyun, Dongwoo & Milcheva, Stanimira, 2019. "Spatio-temporal effects of an urban development announcement and its cancellation on house prices: A quasi-natural experiment," Journal of Housing Economics, Elsevier, vol. 43(C), pages 23-36.
    6. Gabriel M. Ahlfeldt, 2010. "Architektur, Ökonomie – Architekturökonomie," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(4), pages 340-355, November.
    7. 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.
    8. Feddersen, Arne & Maennig, Wolfgang, 2012. "Sectoral labour market effects of the 2006 FIFA World Cup," Labour Economics, Elsevier, vol. 19(6), pages 860-869.
    9. Gabriel Ahlfeldt & Wolfgang Maennig & Michaela Ölschläger, 2009. "Lifestyles and Preferences for (Public) Goods: Professional Football in Munich," Working Papers 030, Chair for Economic Policy, University of Hamburg.
    10. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.
    11. 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.
    12. Dehring, Carolyn A. & Depken II, Craig A. & Ward, Michael R., 2008. "A direct test of the homevoter hypothesis," Journal of Urban Economics, Elsevier, vol. 64(1), pages 155-170, July.
    13. Xia Feng & Brad Humphreys, 2018. "Assessing the Economic Impact of Sports Facilities on Residential Property Values," Journal of Sports Economics, , vol. 19(2), pages 188-210, February.
    14. Brad R. Humphreys & Adam Nowak, 2015. "Professional Sports Facilities, Teams and Property Values: Evidence from Seattle's Key Arena," Working Papers 15-06, Department of Economics, West Virginia University.
    15. John Charles Bradbury, 2022. "Does hosting a professional sports team benefit the local community? Evidence from property assessments," Economics of Governance, Springer, vol. 23(3), pages 219-252, December.
    16. 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.
    17. Gabriel Ahlfeldt & Wolfgang Maennig, 2010. "Stadium Architecture and Urban Development from the Perspective of Urban Economics," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 629-646, September.
    18. Gabriel M. Ahlfeldt & Nancy Holman, 2018. "Distinctively Different: A New Approach to Valuing Architectural Amenities," Economic Journal, Royal Economic Society, vol. 128(608), pages 1-33, February.
    19. Gabriel M. Ahlfeldt & Wolfgang Maennig & Michaela …lschläger, 2012. "Support For and Resistance Against Large Stadiums: The Role of Lifestyle and Other Socio-economic Factors," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 7, Edward Elgar Publishing.
    20. Richter, Felix & Ahlfeldt, Gabriel & Maennig, Wolfgang, 2013. "Urban renewal after the Berlin Wall," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79789, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Property prices Stadium impact;

    JEL classification:

    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.