AUTHOR=Matthiesen Lasse Læbo , Lautrup Marie , Panduro Toke Emil 

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

JOURNAL=Frontiers in Sustainable Cities

VOLUME=Volume 7 - 2025

YEAR=2025

URL=https://www.frontiersin.org/journals/sustainable-cities/articles/10.3389/frsc.2025.1522520

DOI=10.3389/frsc.2025.1522520

ISSN=2624-9634

ABSTRACT=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.