The Impact of Hosting Sport Mega-Events in Small Communities: An Analysis of Local Real Estate Markets and Relocation of Local Residents

This dissertation examines the impact that hosting a sport mega-event may have on the regional economy alongside the impact on local residents. Specifically, the present research estimates the net impact the 2018 Olympics had on temporary housing prices and the relocation of low-income households in small host and neighboring districts in South Korea. The study analyzes monthly rent prices and rental deposit prices over an 11-year period that includes the Olympics. Based on a hedonic pricing model, Two-Way Fixed Effects regressions estimate the magnitude of the impact on temporary housing prices and further assess whether the influence is associated with the Games. Additionally, Hot-Spot Analysis based on geographic information system visualizes the dispersed impact on the dynamic displacement of low-income residents in Olympic host districts. The empirical findings suggest that monthly rent prices only increased during the construction periods prior to the Games, while deposit prices inflated both before and after the event. Meanwhile, low-income residents moved into host regions prior to the Games but moved out of host districts after the Olympics. The increase in rent prices indicates demand for temporary housing in the vicinity of potential sport facilities before an event, while the gradual increase in deposit prices may imply financial burdens on low-income residents in host regions. Consistently relocating residents with low-income status provides a deeper understanding of the potential gentrification of regions that hosted the Games.