The Construction of New Arenas has a positive impact on real estate values
October 13, 2015
FOR IMMEDIATE RELEASE, Langley, BC - The Real Estate Investment Network (REIN) has compiled research on the impact that new arenas, such as Rogers Arena in the new “Ice District” in Edmonton, will have on real estate values. The results will be shared at this weekend’s upcoming Real Estate Investing forum being held October 16th – 18th at the Northlands Expo Center (7300 116 Ave NW). The 28 page report examines the positive and negative ripple effects that professional sports facilities have on real estate values, even when controlling for general house price inflation and/or transportation improvements. The purpose of this report is to educate anyone purchasing a home or investment property to maximize their return by clearly outlining how any existing, new, or proposed arena project will potentially affect the price.
The findings of the research clearly support the following:
- An arena’s positive impact on housing values can be felt most within a 5 kilometer radius and has the largest effect when appealing architecture, community plazas, park landscapes, retail, commercial, and entertainment spaces, and the stadiums construction itself are incorporated into its design.
- A negative effect on property values is felt when the costs of proposed stadium necessitates the increase of property taxes.
- Homes in neighborhoods close to new stadium builds (or proposed stadium builds), on average, have premiums ranging between 3% and 15%, depending on the different types of housing, parking options available, and the distance from the stadium itself.
- Housing values increase on average 1.75 % for each 10% decrease in distance from a stadium, with the positive price increase being highest for homes in closest proximity to the stadiums and decreasing gradually outwards within the aforementioned radius.
- When a stadium is located outside the downtown core of a city, and is not connected to any other economic development activities or an urban redevelopment program, residential property values around the facility will still see a positive increase in value. However, this increase will not be as dramatic as those that are built in, or with nearby accessibility, to the Central Business District (CBD)
- While close proximity to the stadium usually results in the largest price increases, the regular presence of fans may lead to a constant source of noise, incivilities, traffic congestion and a scarcity of parking. These are all factors with the potential to create a price depreciating effect.
About The Real Estate Investment Network Ltd.
Founded in 1993, The Real Estate Investment Network Ltd. (REIN) has grown over the years to become Canada’s leading real estate research and education organization for investors and homeowners across North America. REIN does not sell or market real estate to its members or the general public, but instead conducts objective and unbiased research, analysis and investor education. For further information on REIN, visit www.reincanada.com.
For an interview with REIN’s Senior Analyst, Don R. Campbell, please contact: