A new study from Century 21suggests housing values rise when NFL teams win:
The question was this: What is the impact on a city when the hometown team does well or doesn’t do well? Century 21 looked at teams’ successes, population growth from census numbers, home value appreciation and attendance rates. And the correlation between on-the-field success and real estate prices was evident:Four of the five cities with teams that went from a losing record in 2010 to a winning record in 2011 saw average home sales prices increase between 2010 and 2011.
After winning the Super Bowl, Green Bay, Wis., saw a population growth of 1.7 percent in 2011, compared with runner-up Pittsburgh’s 0.6 percent growth.
Going from a record of 10-6 in 2010 to 2-14 in 2011, Indianapolis, the home of the Colts, saw a 19.8 percent decrease in home sales.
Eight of the nine cities with a team that had attendance rates of 100 percent or more in 2011 saw average home sales prices rise that year.
The NFL is a powerful entity but does it have this much power? Is this due to a small sample size (this article mentions only one year of data)? Are there other factors behind this correlation? If I had to guess at what is going on here, I suspect this is too small of a sample and that 2011 prices in certain cities happened to coincide with NFL results. Why not look at the housing crisis years and see the relationship between records and housing values?
I’m generally skeptical of sports fans and others that claim sports are important for the civic pride of a community or that new stadiums need to be funded by taxpayers because the loss of a team will hurt the local economy. However, this could be pure genius from Century 21. What better way to boost business than to hook your services to the popular NFL? Hey, there was even a Century 21 2012 Super Bowl ad!