The impact of professional sports facilities on housing values: Evidence from census block group data

We estimate the effect of proximity on residential property values in US cities using a hedonic housing price model with spatial autocorrelation. Estimates based on all 1990 and 2000 Census block groups within five miles of every NFL, NBA, MLB, and NHL facility in the US suggest that the median house value in block groups is higher in block groups closer to facilities, suggesting that positive externalities from professional sports facilities may be capitalized into residential real estate prices. The existence of external benefits may justify some of the large public subsidies for construction and operation of professional sports facilities.

► Develop evidence of intangible benefits from sports facilities in housing prices. ► Estimate a spatial hedonic model with correction for spatial autocorrelation. ► Analyze data from cities with NFL, NBA, MLB and NHL teams in 1990, 2000. ► Find property values higher near facilities controlling for other factors.