Does Entry of Food-and-Drink Establishments Raise Local House Prices? Event-Study Evidence from London

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Hauptverfasser: Liu, Wanqi, Zhao, Rong
Format: Preprint
Veröffentlicht: 2026
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author Liu, Wanqi
Zhao, Rong
author_facet Liu, Wanqi
Zhao, Rong
contents Restaurants, cafes, pubs, and takeaways are among the most visible markers of neighborhood change, yet whether their arrival is capitalised into nearby housing values remains empirically unsettled. We assemble a London-wide panel linking Land Registry prices, non-domestic EPC lodgement timings for food-and-drink establishments, and neighborhood amenity measures at the LSOA level. Our preferred annual event-study design defines treatment as the first clean-onset year in which an LSOA records at least two eligible EPC lodgements for food-and-drink establishments, after a two-year lookback with no prior entries. In this specification, pre-trend tests are not rejected in either the stacked or Sun-Abraham estimators, and log house prices rise gradually from about 0.5% in the event year to roughly 3.4--3.7% by years four and five. The results are consistent with local amenity capitalization following commercial entry, while remaining appropriately cautious about endogenous siting and concurrent redevelopment.
format Preprint
id arxiv_https___arxiv_org_abs_2603_03260
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Does Entry of Food-and-Drink Establishments Raise Local House Prices? Event-Study Evidence from London
Liu, Wanqi
Zhao, Rong
Physics and Society
General Economics
Economics
Restaurants, cafes, pubs, and takeaways are among the most visible markers of neighborhood change, yet whether their arrival is capitalised into nearby housing values remains empirically unsettled. We assemble a London-wide panel linking Land Registry prices, non-domestic EPC lodgement timings for food-and-drink establishments, and neighborhood amenity measures at the LSOA level. Our preferred annual event-study design defines treatment as the first clean-onset year in which an LSOA records at least two eligible EPC lodgements for food-and-drink establishments, after a two-year lookback with no prior entries. In this specification, pre-trend tests are not rejected in either the stacked or Sun-Abraham estimators, and log house prices rise gradually from about 0.5% in the event year to roughly 3.4--3.7% by years four and five. The results are consistent with local amenity capitalization following commercial entry, while remaining appropriately cautious about endogenous siting and concurrent redevelopment.
title Does Entry of Food-and-Drink Establishments Raise Local House Prices? Event-Study Evidence from London
topic Physics and Society
General Economics
Economics
url https://arxiv.org/abs/2603.03260