Any new football stadium – including Levi’s Stadium in Santa Clara where the Super Bowl will be played this weekend – is touted as being an economic engine for the surrounding community.
It helps grow jobs and businesses and attracts tourists and their dollars to a new part of a city’s landscape.
But does that actually translate to real dollars for the people who live near the stadium (and who actually have to put up with the associated increased traffic congestion, noise and crowds)?
Trulia decided to take a look at the current value of real estate and comparable rentals within a 2-mile radius around existing NFL stadiums and evaluated changes to home values near stadiums built in the last decade.
Here’s what they found:
- Of the 31 neighborhoods around the nation’s pro football stadiums, nearly two thirds have higher housing values, on average, than houses in non-stadium neighborhoods.
- During the last 10 years, five new pro football stadiums have opened and none, so far, has had a noticeable impact in raising home values in its immediate vicinity (a two mile radius).
- Near Dallas, prices around AT&T stadium have lost value compared to the greater Arlington, Texas, area since that venue opened in 2009.
- Prices of homes near Lucas Oil Stadium have failed to keep pace with the greater Indianapolis market since the venue opened in August 2008.
While their findings are inconclusive, Trulia says it’s unlikely that a new stadium really has a positive impact on local real estate. Trulia says that due to the varying demographic conditions where stadiums are located–the Jets’ stadium is located in the sparsely-populated Meadowlands region of East Rutherford, N.J. while the Steelers’ stadium is right in downtown Pittsburgh–it’s hard to say that the construction of a stadium itself really has a major impact on local real estate.
Here’s a breakdown of how much more, or less, homes near a stadium are worth compared to the surrounding region: