Craft breweries push up house prices in the US

Living in close proximity to a craft brewery could help push up the asking price of your property, according to a study by researchers at the University of Toledo and North Carolina.

Condominiums in centre-city neighbourhoods recorded a near 3% increase on sales price after a brewery opened within a half mile, while single family homes in centre-city neighbourhoods saw a near 10% increase.

Using Charlotte, North Carolina, as a case study, researchers found that craft breweries have a positive impact on residential property values.

For the study, researchers focused on properties sold between 2002 and 2017 within a half mile buffer of a brewery, with 21 breweries opened in Charlotte between March 2009 and October 2016.

The team found that while many areas in close proximity to a craft brewery appear to have been associated with relatively higher price premiums even before the opening of the brewery, breweries tend to add to this premium.

“These results are informative to policymakers considering revising zoning laws and other regulations in efforts to promote the growth of craft breweries and spur economic development in their local economies,” said Dr Isabelle Nilsson, assistant professor in the Department of Geography and Earth Sciences at the University of North Carolina at Charlotte.

Condominiums in centre-city neighbourhoods recorded a nearly 3% increase on sales price after a brewery opened within a half mile, while single family homes in centre-city neighbourhoods saw a near 10% increase.

However the team found the presence of a brewery had no impact on the price of commercial properties.

“Being able to walk to a craft brewery in the evening or late afternoon on the weekend is considered a positive amenity that would – for some people – be attractive when looking at a house,” said Dr. Neil Reid, professor of geography and planning at The University of Toledo.

“There is a different attitude toward a craft brewery. It’s perceived differently than a liquor store or bar.”

According to the Brewers Association, craft breweries contributed US$76.2 billion to the US economy in 2017, providing more than 500,000 total jobs with more than 135,000 jobs directly at breweries or brewpubs.

“This new research shows that craft breweries contribute to increased property tax revenues for local governments, in addition to job creation and aiding neighbourhood revitalisation efforts,” Reid added.

“However, the effects to residential property values may not be as significant in places with higher rates of vacancies and lower population growth, as well as in more established cities such as Chicago or New York.”

The study was published in Growth and Change: A Journal of Urban and Regional Policy.