Proud of, but too close: the negative externalities of a new sports stadium in an urban residential area

Sports facilities have been found to generate positive externalities over negative ones, so empirical studies report residential property prices increase near these facilities. This study investigates the effect of a new baseball stadium on housing values using a case which is deemed to induce negative externalities overwhelmingly due to the case-specific characteristics. Employing a difference-in-differences (DID) approach on data reflecting over 17,000 apartment transactions, this study finds a significant price depreciation within 2 km from a new stadium by up to approximately 7% after its opening. The spatial variation in price changes presents a clear distance decaying pattern, implying that the price effects are closely associated with negative externalities such as light pollution, noise, and traffic congestion. All of which would obviously fade away being further from the origin, the stadium.