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Federal Reserve Bank of St. Louis
Negative Externalities and Real Asset Prices: Closing of Stapleton Airport and Effect on Nearby Housing Markets
The closing of a busy airport has large effects on noise and economic activity. We examine the effects of Stapleton airport’s closing on nearby, Denver housing markets. We find evidence of immediate anticipatory effects on prices upon announcement of the closing, but no price changes at closing likely because it was widely anticipated. However, we find that high income and white households delayed moving into these locations until after the airport’s closing. Also, developers upgraded the quality of houses being built after closing. Further, post-closing, these demographic and housing stock changes had substantial effects on housing prices.
Cite this item
Jeffrey P. Cohen & Cletus C. Coughlin & Jonas C. Crews & Stephen L. Ross, Negative Externalities and Real Asset Prices: Closing of Stapleton Airport and Effect on Nearby Housing Markets, Federal Reserve Bank of St. Louis, Working Papers 2019-27, 14 Oct 2019.
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
Keywords: airport noise; housing prices; airport closing; anticipatory effects; dynamic price effects
This item with handle RePEc:fip:fedlwp:2019-027
is also listed on EconPapers
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