The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth

Carolyn Dehring (), Craig Depken and Michael Ward ()
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Carolyn Dehring: Department of Insurance, Legal Studies and Real Estate, The University of Georgia

No 616, Working Papers from International Association of Sports Economists, North American Association of Sports Economists

Abstract: We 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 find 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 values 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 commenced. This decline was almost equal to the anticipated household sales tax burden, suggesting that the average expected amenity effect of hosting the Cowboys in Arlington was not significantly different from zero.

Keywords: economic impact; event studies; sports; property values; stadiums (search for similar items in EconPapers)
JEL-codes: H73 L83 R53 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-09
New Economics Papers: this item is included in nep-geo, nep-pbe, nep-spo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: THE IMPACT OF STADIUM ANNOUNCEMENTS ON RESIDENTIAL PROPERTY VALUES: EVIDENCE FROM A NATURAL EXPERIMENT IN DALLAS‐FORT WORTH (2007)
Working Paper: The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth (2006)
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