The Effect of a Sports Stadium on Housing Rents: An Application of Geographically Weighted Regression

Abstract

Researchers have determined that real estate prices vary in continuous ways as a function of spatial characteristics. In this study we examine whether geographically weighted regression (GWR) provides different estimates of price effects around a sports stadium than more traditional regression techniques. We find that an application of GWR with hedonic prices finds that the stadium has a negative external effect on housing rents that extends outward 560 meters, in contrast to the positive external effect on housing rents found using a conventional estimation technique.

Keywords

• Housing Rents
• Geographically Weighted Regression
• Colombia