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

23 Pages Posted: 22 Jun 2007 Last revised: 13 Feb 2018

See all articles by Carolyn A. Dehring

Carolyn A. Dehring

University of Georgia - Department of Insurance, Legal Studies, Real Estate

Craig A. Depken

University of North Carolina at Charlotte - The Belk College of Business Administration - Department of Economics

Michael R. Ward

University of Texas at Arlington - College of Business Administration - Department of Economics; ZEW, Mannheim

Multiple version iconThere are 2 versions of this paper

Date Written: 2006

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

JEL Classification: L83, R53, H73

Suggested Citation

Dehring, Carolyn A. and Depken, Craig A. and Ward, Michael Robert, The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth (2006). Available at SSRN: https://ssrn.com/abstract=993250 or http://dx.doi.org/10.2139/ssrn.993250

Carolyn A. Dehring

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6255
United States
706-542-3809 (Phone)

Craig A. Depken (Contact Author)

University of North Carolina at Charlotte - The Belk College of Business Administration - Department of Economics ( email )

Charlotte, NC 28223
United States

Michael Robert Ward

University of Texas at Arlington - College of Business Administration - Department of Economics ( email )

330 Business Building
Box 19479
Arlington, TX 76019
United States
817-272-3090 (Phone)
817-272-3145 (Fax)

ZEW, Mannheim ( email )

D-68034 Mannheim
Germany

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