Mortgage Blog

Does a New NFL Stadium Mean Improved Home Values?

Housing Markets
One of the biggest real estate stories of the past few weeks has been the decision of the National Football League (NFL) to move the St. Louis Rams back to Los Angeles, to a new site (to open in 2019) in Inglewood.  Additionally, the San Diego Chargers are considering moving up to LA as well, which could trigger a move to San Diego by the Oakland Raiders.  As with all such expansions and moves by professional sports teams, local residents are always encouraged by boosters that a new team means a boost in property values.  But how real is that promise?  If you are considering buying a new home in a city with a sports team, should you buy near the stadium (within a mile or two), or outside the immediate neighborhood?  The number crunchers at Trulia examined the relationship between sports teams and those local home values and found that the impact is “inconclusive,” and that the neighboring communities may have more to do with values than the advent of a new team in town.  For instance, in Philadelphia, you’ll pay a 44.3% premium to live near Lincoln Field, home of the Eagles; however, you’ll get a deal if you want to buy near Heinz Field in Pittsburgh – an 18% discount compared to the rest of Pittsburgh. So what about Rams move to Inglewood?  It certainly looks like the neighborhood could be ready for some growth – home prices are 8.9% lower nearby the proposed stadium site, and with low local inventory, prices may indeed be on the rise.  Click here to view the full list of NFL stadiums and cities.  A handy reference if your town starts to talk about bringing a new team and raise home values!
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