Homebuyers Pay More to be Near Schools with Winning Football Teams
|December 10, 2013||Posted by Staff under Economic Principles, Geonomics In Action|
This 2013 excerpt of Pacific Standard, Spt 13, is by Tom Jacobs.
The easiest way to increase the value of your home [site]? Live near a winning high school football team.
A study of more than half a million single-family home [+land] sales in upstate New York between 2000 and 2009 finds that in places where the local Friday Night Lights squad won its first state football championship, property [location] values increased by 1.65 percent over the following year.
Andrew Friedson of the University of Colorado-Denver speculates the spike may be due to a “local pride effect,” most pronounced when the team plays in the highly competitive AA division, which is limited to schools with 1,000 students or more. The impact was strongest in the first three months following a championship victory, after which it gradually dissipated.
Ed. Notes: Not only in Texas but all across America regular Americans are crazy about their version of rugby they call football. I guess it must be nice to live near the loud cheering carrying across the familiar blocks on a fall Friday night. But it’s the location that rises in value, not anything on it, the media routinely neglect to point out.
The phenomenon is not just interesting but also presented as good news. American media assume homeowners don’t own homes so much as speculate in their house. A higher price for the site beneath the house doesn’t mean a higher land tax or land dues — eventho’ it should — but rather means a fatter profit when the owner sells out and moves on, uprooting his family and fraying the neighborhood fabric.
Scoring big in real estate is about the only way most regular people can every hope to score. It’s not capitalism that’s spreading over the world with the rise of China and others but land fever that’s infecting the human race. Like in a game of musical chairs, most ordinary people only hope to win and get out before the bubble bursts.