May 13, 2016
By: Daniella Soloway
As the Rams get ready to head back to Los Angeles and build what is expected to be the world’s priciest stadium, Inglewood and the surrounding downtown Los Angeles area will surely feel its effects. Many wonder what will happen to housing surrounding the area, and with a new report released by Ten-X, the outcome is predictable.
Ten-X performed a study of 12 major league stadiums (NBA, MLB, and NFL) and their respective effects on the sales volume and price of homes in close proximity to the sporting destinations. By charting the numbers from stadiums announced or opened between 1990-2015, the report concluded that home sales volume rises approximately 80% of the time over the surrounding metro’s market within the first five years of the stadium’s opening.
Additionally, about 50-60% of the time, housing prices in the areas surrounding new stadiums increased modestly above the metro’s gains. The population growth also increases by 26% when compared to the overall metro area. Location, as always, plays a factor in growth, as stadiums in urban areas are more likely to see an increase in home sales volume than those built in suburban areas.