Reis economists Barbara Byrne Denham and Evan Taback take to the pages of National Real Estate Investor in an attempt to find a connection between NBA championships and rent growth. Instead, they found a different connection between basketball and multifamily success.
After analyzing rent growth data for metros whose teams have won an NBA championship, the results were mixed and inconclusive. While rents skyrocketed in Oakland last year, and the Golden State Warriors took home the glory, other metros with winning teams in past years have instead seen deceleration.
But when they looked at whether apartment fortunes changed when an NBA team relocated to a metro that had no other major sports franchises, the results based on the Memphis Grizzlies, Oklahoma City Thunder and Brooklyn Nets told a different story.
In these metros during the year before and year of the relocation there was positive rent growth for each, including accelerating rent growth in Memphis the year the Grizzlies moved to town and accelerating rent growth in the year following the Nets move to Brooklyn.
Of course there are far more drivers of rent growth that appeal to tenants, and a new basketball team is just one amenity as are many other cultural factors, such as new theaters, museums and arts centers that emerge in a city as the population grows ... Still, heading into the next basketball season, it was interesting to look at rent growth for this subset of metros to see how rents changed with the success of their basketball team.