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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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
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/frsc.2025.1522520/full
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author Lasse Læbo Matthiesen
Marie Lautrup
Toke Emil Panduro
author_facet Lasse Læbo Matthiesen
Marie Lautrup
Toke Emil Panduro
author_sort Lasse Læbo Matthiesen
collection DOAJ
description 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.
format Article
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issn 2624-9634
language English
publishDate 2025-06-01
publisher Frontiers Media S.A.
record_format Article
series Frontiers in Sustainable Cities
spelling doaj-art-b330fc369ef34ce4b6c2d6ecd233c1692025-08-20T02:05:17ZengFrontiers Media S.A.Frontiers in Sustainable Cities2624-96342025-06-01710.3389/frsc.2025.15225201522520From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house pricesLasse Læbo Matthiesen0Marie Lautrup1Toke Emil Panduro2Copenhagen Business School, Frederiksberg, DenmarkDepartment of Food and Ressource Economics, University of Copenhagen, Copenhagen, DenmarkDepartment of Environmental Science, Aarhus University, Aarhus, DenmarkWe 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.https://www.frontiersin.org/articles/10.3389/frsc.2025.1522520/fullhedonicvaluationculture investmenturban renewalindustrialrevitalization
spellingShingle Lasse Læbo Matthiesen
Marie Lautrup
Toke Emil Panduro
From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices
Frontiers in Sustainable Cities
hedonic
valuation
culture investment
urban renewal
industrial
revitalization
title From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices
title_full From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices
title_fullStr From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices
title_full_unstemmed From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices
title_short From industry to center for arts and culture: the impact of industrial heritage transformation on neighborhood house prices
title_sort from industry to center for arts and culture the impact of industrial heritage transformation on neighborhood house prices
topic hedonic
valuation
culture investment
urban renewal
industrial
revitalization
url https://www.frontiersin.org/articles/10.3389/frsc.2025.1522520/full
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