The Implications of the Addition of an NFL Team and Stadium on the Los Angeles Housing Market

Open Access
Author:
Kurtek, Joseph Thomas
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • N Edward Coulson, Thesis Supervisor
  • James R. Tybout, Honors Advisor
Keywords:
  • NFL
  • Stadiums
  • Economics
  • Southern California
  • Kurtek
  • Joseph
  • Urban
  • Housing
  • Football
Abstract:
As Los Angeles has gained approval to start construction of Farmers Field next to the Staples Center and other investors such as Edward P. Roski attempt to finance stadium construction efforts in Southern California, there has never been a better time to study the effects that these stadiums could have on the area. In this thesis, an overview of the prospective plans as well as the history of the NFL in Southern California will be studied in-depth. With this, papers examining FedEx Field in Maryland as well as the new Cowboys stadium will be analyzed to try to determine what effect, if any, a possible new NFL stadium and team could have on the Los Angeles housing market. To do this, a fixed-effects regression of panel data from six cities of recently added NFL teams will be used to look for a correlation between the housing price index and the presence of an NFL franchise. In conclusion, this paper will discuss previous papers, as well as the regression data to help determine what effect, if any, a new NFL team will have on the Los Angeles housing market. From this, the paper was able to infer that there is a greater effect on the HPI in small markets as a result of the presence of an NFL franchise and stadium than there is in large markets. Small markets experienced a statistically significant coefficient of 2.26 for the presence of an NFL franchise, while the effect on large markets was deemed to be negligible.