Longer term housing market effects of a major US airport closure

Abstract

AbstractUsing a unique dataset, we examine various effects of closing Denver's Stapleton Airport, and subsequent redevelopment, on nearby housing markets. We find immediate anticipatory price effects upon announcement, but no price changes at closing and little evidence of upward trending prices between announcement and closing. Post‐closure, more higher income and fewer Black households moved in, and developers built larger houses on larger lots. Increases in the price of pre‐existing housing are also found. Finally, we find that post‐closing price increases were largest in areas that were closest to the center of new commercial development and that had greater exposure to new housing construction.