The Relocation Effect of a Major League Franchise on Residential Property Values
Published in Working Paper, 2026
We exploit the relocation of the NFL’s Rams from St. Louis in 2016 to estimate the localized amenity value associated with a professional sports team. Unlike arrivals, which typically coincide with the construction of a new stadium, this departure left the stadium in use, allowing us to separate the amenity value of the team from that of the facility. Using difference-in-differences hedonics, we find that house prices within three miles of the stadium declined by about 7.8 percent relative to the rest of the city, with an effect that decays nonlinearly with distance. Synthetic control estimates reveal a corresponding shortfall in food service and retail establishments in the urban core, and a mediation analysis suggests that the restaurant channel accounts for about one fifth of the price differential. Both patterns point to forgone growth rather than outright contraction, as the durable stadium and building stock remain in place. The implied loss in amenity value is substantial, though insufficient to justify the public funds proposed to retain the team.
Recommended citation: Froch, Jonas; (2026); "The Relocation Effect of a Major League Franchise on Residential Property Values"; Working Paper
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