The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth
AbstractWe investigate the impact of a potential new sports venue on residential property values, focusing on the National Football League's Dallas Cowboys' search for a new host city in the Dallas-Fort Worth area. We ¯nd that residential property values in the city of Dallas increased following the announcement of a possible new stadium in the city of Dallas. At the same time, property val- ues fell throughout the rest of Dallas County, which would have paid for the proposed stadium. These patterns reversed when the Dallas stadium proposal was abandoned. Subsequently, a series of announcements regarding a new publicly-subsidized stadium in nearby Arlington, Texas, had a deleterious effect on residential property values in Arlington. In aggregate, average property values declined approximately 1.5% relative to the surrounding area before stadium construction com- menced. This decline was almost equal to the anticipated household sales tax burden, suggesting that the average expected amenity e®ect of hosting the Cowboys in Arlington was not signi¯cantly different from zero.
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Bibliographic InfoPaper provided by University of Texas at Arlington, Department of Economics in its series Working Papers with number 0602.
Length: 23 pages
Date of creation: 2006
Date of revision:
economic impact; event studies; sports; property values; stadiums;
Other versions of this item:
- 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.
- Carolyn A. Dehring & Craig A. Depken, II & Michael R. Ward, 2006. "The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth," Working Papers 0616, International Association of Sports Economists & North American Association of Sports Economists.
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
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