From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices

We examine how converting an industrial heritage site in Aarhus, Denmark, into a center for arts and culture affects nearby residents’ welfare. Using a hedonic house‑price model and a difference‑in‑differences design, we track apartment prices before and after the conversion. Prices within the neigh...

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Bibliographic Details
Main Authors: Lasse Læbo Matthiesen, Marie Lautrup, Toke Emil Panduro
Format: Article
Language:English
Published: Frontiers Media S.A. 2025-06-01
Series:Frontiers in Sustainable Cities
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Online Access:https://www.frontiersin.org/articles/10.3389/frsc.2025.1522520/full
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Summary:We examine how converting an industrial heritage site in Aarhus, Denmark, into a center for arts and culture affects nearby residents’ welfare. Using a hedonic house‑price model and a difference‑in‑differences design, we track apartment prices before and after the conversion. Prices within the neighborhood rose by 2.3–3 % relative to the rest of the city. This uplift represents a welfare gain of €17.5–21 million for the local community. As one of the few quasi‑experimental evaluations of creative‑led heritage revitalization, our study provides rigorous causal evidence of substantial indirect economic benefits. This evidence can guide future investments to convert disused industrial buildings into cultural and recreational spaces that serve local communities.
ISSN:2624-9634