Mega-Events and Housing Costs: Raising the Rent while Raising the Roof?
Date of This Version
This paper examines the relationship between hosting mega-events such as the Super Bowl, Olympics, and World Cup and rental housing prices in host cities. If mega-events are amenities for local residents, then rental housing prices can serve as a proxy for estimating residents’ willingness to pay for these amenities. An analysis of rental prices in a panel of American cities from 1993-2005 fails to find a consistent impact of mega-events on rental prices. When controls are placed on the regression models to account for nationwide annual fluctuations in rental prices, mega-events generally exhibit little impact on rental prices in cities as a whole and are as likely to reduce rental prices as increase them. Somewhat stronger evidence exists, however, that mega-events affect rental prices outside of the center city in a fundamentally different manner than in the city core.
Working Paper Number
Coates, Dennis and Matheson, Victor, "Mega-Events and Housing Costs: Raising the Rent while Raising the Roof?" (2009). Economics Department Working Papers. Paper 40.