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The Closing of a Major Airport: Immediate and Longer-Term Housing Market Effects

Jeffrey Cohen (), Cletus Coughlin (), Jonas C. Crews and Stephen Ross ()

No 2020-001, Working Papers from Federal Reserve Bank of St. Louis

Abstract: The closing of a busy airport has large effects on noise and economic activity. Using a unique dataset, we examine the effects of closing Denver’s Stapleton Airport on nearby housing markets. We find evidence of immediate anticipatory price effects upon announcement, but no price changes at closing likely because closing was widely anticipated. Further, after airport closure, high income and white households moved into these locations and developers upgraded the quality of houses being built. Finally, post-closing, these demographic and housing stock changes had substantial effects on housing prices, even after restricting the sample to pre-existing housing.

Keywords: housing prices; Airport noise; neighborhood change; airport closing; anticipatory effects; dynamic price effects; long-term effects (search for similar items in EconPapers)
JEL-codes: R21 R41 R31 G14 (search for similar items in EconPapers)
Pages: 27
Date: 2020-01-08, Revised 2020-01-08
New Economics Papers: this item is included in nep-geo, nep-tre and nep-ure
Note: Related professional presentation: Cohen, J., Coughlin, C. & Crews, J. (2018, January). Airport Noise and House Prices: Closing of One Airport and Opening of a New Airport in Denver. ASSA Meetings, Philadelphia, PA.
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DOI: 10.20955/wp.2020.001

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Handle: RePEc:fip:fedlwp:86727