The Effect of Mega-Events on Housing Prices: The 2012 London Summer Olympic
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- London; Olympics; Sports; Mega-Events; Housing Prices; Hedonic
This research estimates the impact of the 2012 Summer Olympics on housing prices in London using a semi-logarithmic hedonic model and a difference-in-difference approach. The model finds that housing prices in the boroughs that hosted the event increased by between 1.3 and 5.5 percent after the bid was announced and by 6.6 and 10.9 percent after the event took place. Not all five host boroughs saw a uniform effect; Newham--the borough that contains most of the Olympic Park--saw a decline in housing prices after the event by between 3.7 and 5.1 percent. This research also highlights the importance of considering how crime and supply conditions are included in hedonic pricing models.