Major League Soccer Expansion and Property Values:  Do Sports Franchises Generate Amenities or Disamenities?

Aakrit Joshi; Brady P. Horn; Robert P. Berrens

doi:10.1080/00036846.2020.1751050

Major League Soccer Expansion and Property Values: Do Sports Franchises Generate Amenities or Disamenities?

Aakrit Joshi, Brady P. Horn, Robert P. Berrens

Economics and Geography

Research output: Contribution to journal › Article › peer-review

Abstract

While amenity effects generated by sports stadiums or facilities have been studied extensively for housing markets, there has been significantly less attention focused on team effects generated by sports franchises alone. The objective of this analysis is to estimate the impact of Major League Soccer (MLS) expansion on property values, using nearby condominium sales from 2003–2016 in Seattle, Washington. Econometric results from hedonic pricing method and repeat sales regression indicate that property values depreciated after the Seattle Sounders Football Club was promoted to the MLS in 2009. The distance-decaying depreciation in condominium values occurs within a mile of the facility.

Original language	American English
Pages (from-to)	4881
Number of pages	4899
Journal	Applied Economics
Volume	52
Issue number	44
DOIs	https://doi.org/10.1080/00036846.2020.1751050
State	Published - Jan 1 2020

Keywords

Major league soccer
sports franchise
property values
repeat sales regression
hedonic pricing method

Disciplines

Business

Access to Document

10.1080/00036846.2020.1751050License: Unspecified

https://doi.org/10.1080/00036846.2020.1751050

Cite this

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title = "Major League Soccer Expansion and Property Values: Do Sports Franchises Generate Amenities or Disamenities?",

abstract = " While amenity effects generated by sports stadiums or facilities have been studied extensively for housing markets, there has been significantly less attention focused on team effects generated by sports franchises alone. The objective of this analysis is to estimate the impact of Major League Soccer (MLS) expansion on property values, using nearby condominium sales from 2003–2016 in Seattle, Washington. Econometric results from hedonic pricing method and repeat sales regression indicate that property values depreciated after the Seattle Sounders Football Club was promoted to the MLS in 2009. The distance-decaying depreciation in condominium values occurs within a mile of the facility.",

keywords = "Major league soccer, sports franchise, property values, repeat sales regression, hedonic pricing method",

author = "Aakrit Joshi and Horn, {Brady P.} and Berrens, {Robert P.}",

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AB - While amenity effects generated by sports stadiums or facilities have been studied extensively for housing markets, there has been significantly less attention focused on team effects generated by sports franchises alone. The objective of this analysis is to estimate the impact of Major League Soccer (MLS) expansion on property values, using nearby condominium sales from 2003–2016 in Seattle, Washington. Econometric results from hedonic pricing method and repeat sales regression indicate that property values depreciated after the Seattle Sounders Football Club was promoted to the MLS in 2009. The distance-decaying depreciation in condominium values occurs within a mile of the facility.

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KW - sports franchise

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KW - repeat sales regression

KW - hedonic pricing method

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