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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.

Suggested Citation

  • 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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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. repec:kap:iaecre:v:25:y:2019:i:1:d:10.1007_s11294-019-09723-w is not listed on IDEAS

    More about this item

    Keywords

    Repeat sales regression model; Property values; Professional sports; Local externalities;

    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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