1# RECORD 8965e19cc07a82548ccce5e2fba1b9f697ca577c2# TITLE: Craft breweries and residential property values3# YEAR: 2024.0 VENUE: Growth and Change DOI: 10.1111/grow.127104# AUTHORS: Yang Zhou; Neil Reid; Michael C. Carroll5# PAGES: 22 CANDIDATE TABLE PAGES (1-based): [11, 12, 13, 14, 16, 17, 18, 19]6# ABSTRACT: This paper studies the effect of craft breweries on residential property values. Using a hedonic Difference‐in‐Differences (DID) approach and about 250 thousand housing transactions in Denver, Colorado from 1990 to 2016, we investigate the impact of proximity to a craft brewery on residential property values. We consider three types of residence (single‐family home, row house, and condominiums), three types of brewery (all craft breweries, microbreweries, and brewpubs/taprooms), and two measurements of distance (Euclidian and walk‐time). Our most robust results are found for single‐family homes, whose values enjoy a premium of up to 20.4% for being in proximity to a brewpub/taproom several years after, with the average annual maximum premium around 3%. As expected, premiums decline as distance from breweries increase. Beyond a distance of 0.5 km or a 10‐min walk‐time, the premium for a regional/microbrewery is greater than that for a brewpub/taproom. For single family homes within 4 km or 40‐min walk‐time, the annualized premium ranges between 0.41% and 3.01%. These findings support the narrative that craft breweries are a neighborhood asset.789===== PAGE 1 (score 5, numeric-paren 0, table-words 0, var-words 5) =====10111Department of Economics & Economics 12Research Group, University of North Texas, 13Denton, Texas, USA142Department of Geography and Planning, 15The University of Toledo, Toledo, Ohio, USA16Correspondence17Neil Reid.18Email: neil.reid@utoledo.edu19Abstract20This paper studies the effect of craft breweries on residential 21property values. Using a hedonic Difference-in-Differences 22(DID) approach and about 250 thousand housing transac-23tions in Denver, Colorado from 1990 to 2016, we investigate 24the impact of proximity to a craft brewery on residential 25property values. We consider three types of residence 26(single-family home, row house, and condominiums), three 27types of brewery (all craft breweries, microbreweries, and 28brewpubs/taprooms), and two measurements of distance 29(Euclidian and walk-time). Our most robust results are 30found for single-family homes, whose values enjoy a 31premium of up to 20.4% for being in proximity to a brew-32pub/taproom several years after, with the average annual 33maximum premium around 3%. As expected, premiums 34decline as distance from breweries increase. Beyond a 35distance of 0.5 km or a 10-min walk-time, the premium for 36a regional/microbrewery is greater than that for a brewpub/37taproom. For single family homes within 4 km or 40-min 38walk-time, the annualized premium ranges between 0.41% 39and 3.01%. These findings support the narrative that craft 40breweries are a neighborhood asset.41K E Y W O R D S42brewery, housing market, hedonic model, local policy, Zoning43O R I G I N A L A R T I C L E44Craft breweries and residential property values45Yang Zhou1 | Neil Reid2 | Michael C. Carroll146DOI: 10.1111/grow.1271047Received: 20 June 2023 Revised: 4 January 2024 Accepted: 17 January 202448This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and 49distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.50© 2024 The Authors. Growth and Change published by Wiley Periodicals LLC.51Growth Change. 2024;e12710. 52https://doi.org/10.1111/grow.1271053wileyonlinelibrary.com/journal/grow541 of 22555657===== PAGE 11 (score 128, numeric-paren 106, table-words 0, var-words 8) =====5859ZHOU et al.6011 statistically significant price premiums for row houses and condominiums respectively (Tables 4 61and 5). As a result, the remainder of our discussion will focus on single-family homes.62Figure 4 shows how distance from a craft brewery affects the price premiums for single-family homes. 63Generally, the size of these price premiums exhibit distance decay, decreasing with increasing distance 64from a craft brewery. A single-family home within 0.5 km of a craft brewery enjoys a price premium of 6517.3%, with that premium being higher for brewpubs/taprooms (19.0%) than regional/microbreweries 66(16.3%). 8 At a distance of between 1.0 and 1.5 km from a craft brewery the price premium falls to 8.8%, 677.3%, and 8.5% for all craft breweries, brewpubs/taprooms, and regional/microbreweries, respectively. 68Beyond 1.5 km, a larger gap emerges between brewpubs/taprooms and regional/microbreweries, with the 69latter having a larger impact on single-family home price premiums. For example, at a distance of between 703.5 and 4 km the price premium is 9.4% for regional/microbreweries and 3.3% for brewpubs/taprooms.7111 of 2272All craft breweries73Brewpubs/taprooms 74only75Regional/76microbreweries only77logSQFT780.6321*** (0.0274)790.6321*** (0.0275)800.6309*** (0.0277)81bedrooms82−0.0188*** (0.0039)83−0.0188*** (0.0039)84−0.0187*** (0.0040)85fullBaths860.0848*** (0.0057)870.0850*** (0.0057)880.0845*** (0.0058)89halfBaths900.0580*** (0.0066)910.0584*** (0.0065)920.0589*** (0.0066)93distanceCBD94−0.0307* (0.0130)95−0.0282* (0.0130)96−0.0362** (0.0137)97house980.0080 (0.0448)99−0.0270 (0.0461)100−0.0804 (0.0571)101rowhouse1020.1527*** (0.0300)1030.1516*** (0.0300)1040.1522*** (0.0318)105i.distBrew_0to0.5km1060.0001 (0.0232)107−0.0005 (0.0273)108−0.0551* (0.0237)109i.distBrew_0.5to1km110−0.0266+ (0.0150)1110.0000 (0.0143)112−0.0010 (0.0309)113i.distBrew_1to1.5km114−0.0044 (0.0157)115−0.0011 (0.0165)116−0.0218 (0.0144)117i.distBrew_1.5to2km118−0.0020 (0.0217)119−0.0015 (0.0199)1200.0004 (0.0161)121i.distBrew_2to2.5km1220.0145 (0.0312)1230.0127 (0.0166)124−0.0032 (0.0189)125i.distBrew_2.5to3km126−0.0610+ (0.0327)127−0.0593* (0.0255)1280.0033 (0.0236)129i.distBrew_3to3.5km1300.0217 (0.0325)1310.0486 (0.0296)1320.0170 (0.0248)133i.distBrew_3.5to4km1340.0296 (0.0503)1350.0443 (0.0323)1360.0111 (0.0296)137i.distBrew_0to0.5km × i.Post_0to0.5km1380.1025** (0.0341)1390.1077** (0.0413)1400.1284* (0.0520)141i.distBrew_0.5to1km × i.Post_0.5to1km1420.1040*** (0.0277)1430.0986** (0.0311)1440.0264 (0.0312)145i.distBrew_1to1.5km × i.Post_1to1.5km1460.0948*** (0.0193)1470.0849*** (0.0217)1480.0643** (0.0241)149i.distBrew_1.5to2km × i.Post_1.5to2km1500.0335+ (0.0190)1510.0114 (0.0201)1520.0672* (0.0288)153i.distBrew_2to2.5km × i.Post_2to2.5km1540.0478** (0.0159)1550.0403* (0.0176)1560.0470+ (0.0254)157i.distBrew_2.5to3km × i.Post_2.5to3km1580.0345* (0.0162)1590.0325+ (0.0172)1600.0587** (0.0183)161i.distBrew_3to3.5km × i.Post_3to3.5km1620.0174 (0.0146)1630.0145 (0.0147)1640.0956*** (0.0214)165i.distBrew_3.5to4km × i.Post_3.5to4km1660.0500*** (0.0117)1670.0492*** (0.0115)1680.0816*** (0.0216)169Fixed effects: census tract, ZIP code, month170sold, year sold, year built, story, style171Y172Y173Y174Num. Obs.175257,565176257,565177257,565178R 21790.7411800.7401810.741182Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.183+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.184T A B L E 2 185Regression results for all home transactions (distance).186187188===== PAGE 12 (score 129, numeric-paren 104, table-words 2, var-words 8) =====189190ZHOU et al.1915.1.2 | Walk-time192This section reports the results related to walk time. Table 6 shows the results for all the property types 193combined. In this section, we utilize walk-time as a measure of proximity and discuss its impact on 194residential property premiums. We measured walk-time in five-minute intervals. As is the case when 195using distance as the measure of proximity, statistically significant price premiums were consistently 196found for single-family homes, but not for row houses and condominiums. Of the 24 price premiums 197calculated for single-family homes, once again, all of them were statistically significant (Table 7). 198This compares with 12 and 9 statistically significant price premiums for row houses and condomini-199ums respectively (Tables 8 and 9).200Figure 5 shows how walk time from a craft brewery affects the price premiums for single-family 201homes. Generally, the size of these price premiums exhibit distance decay, decreasing with increasing 202distance from a craft brewery. A single-family home within a five-minute walk of a craft brewery 20312 of 22204All craft breweries205Brewpubs/taprooms 206only207Regional/208microbreweries only209logSQFT2100.5024*** (0.0224)2110.5031*** (0.0225)2120.5014*** (0.0225)213bedrooms214−0.0195*** (0.0032)215−0.0198*** (0.0033)216−0.0195*** (0.0032)217fullBaths2180.0763*** (0.0051)2190.0767*** (0.0051)2200.0759*** (0.0051)221halfBaths2220.0621*** (0.0073)2230.0622*** (0.0073)2240.0625*** (0.0072)225distanceCBD226−0.0235+ (0.0129)227−0.0212 (0.0131)228−0.0177 (0.0115)229i.distBrew_0to0.5km230−0.0334* (0.0144)231−0.0350* (0.0163)232−0.0259+ (0.0154)233i.distBrew_0.5to1km234−0.0264+ (0.0146)235−0.0117 (0.0162)236−0.0476** (0.0165)237i.distBrew_1to1.5km238−0.0178 (0.0168)239−0.0086 (0.0179)240−0.0376** (0.0135)241i.distBrew_1.5to2km242−0.0031 (0.0208)243−0.0032 (0.0188)2440.0058 (0.0167)245i.distBrew_2to2.5km246−0.0149 (0.0274)247−0.0071 (0.0175)248−0.0129 (0.0192)249i.distBrew_2.5to3km250−0.0426 (0.0274)251−0.0357 (0.0225)2520.0165 (0.0277)253i.distBrew_3to3.5km254−0.0370 (0.0267)255−0.0148 (0.0252)2560.0254 (0.0271)257i.distBrew_3.5to4km258−0.0542* (0.0229)259−0.0271** (0.0097)2600.0320 (0.0323)261i.distBrew_0to0.5km × i.Post_0to0.5km2620.1592*** (0.0341)2630.1741*** (0.0306)2640.1507*** (0.0429)265i.distBrew_0.5to1km × i.Post_0.5to1km2660.1035*** (0.0195)2670.1037*** (0.0202)2680.1075*** (0.0310)269i.distBrew_1to1.5km × i.Post_1to1.5km2700.0846*** (0.0175)2710.0709*** (0.0203)2720.0819*** (0.0242)273i.distBrew_1.5to2km × i.Post_1.5to2km2740.0502*** (0.0147)2750.0383* (0.0158)2760.0921*** (0.0216)277i.distBrew_2to2.5km × i.Post_2to2.5km2780.0391** (0.0132)2790.0366* (0.0149)2800.0712*** (0.0176)281i.distBrew_2.5to3km × i.Post_2.5to3km2820.0381** (0.0131)2830.0371* (0.0148)2840.0561** (0.0190)285i.distBrew_3to3.5km × i.Post_3to3.5km2860.0286* (0.0135)2870.0266+ (0.0148)2880.0895*** (0.0179)289i.distBrew_3.5to4km × i.Post_3.5to4km2900.0379*** (0.0111)2910.0324** (0.0116)2920.0901*** (0.0200)293Fixed effects: census tract, ZIP code, month294sold, year sold, year built, story, style295Y296Y297Y298Num. Obs.299180,887300180,887301180,887302R 23030.7583040.7573050.759306Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.307+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.308T A B L E 3 309Regression results for single family homes (distance).310311312===== PAGE 13 (score 116, numeric-paren 93, table-words 0, var-words 10) =====313314ZHOU et al.315enjoys a price premium of 17.4%, with that premium being higher for regional/microbreweries 316(20.4%) than brewpubs/taprooms (19.1%). At a walk time of between 5 and 10 min, the price premium 317falls to 18.3%, 16.7%, and 13.7% for brewpubs/taprooms, all craft breweries, and regional/microbrew-318eries respectively. It is worth noting here that the decrease in price premium from within 5 min to 3195–10 min is noticeably larger for regional/microbreweries than brewpubs/taprooms, with the former 320falling from 20.4% to 13.7% compared to a decrease from 19.1% to 18.3% for the former. This may 321reflect the fact that regional/microbreweries often locate in warehouse-type buildings in industrial 322settings where there are a smaller number of nearby residences (Colliers International, 2015). At a 323walk time of between 10 and 15 min, the price premiums for both brewpubs/taprooms and regional/324microbreweries are once again similar, both at 11.1%. They premiums remain similar at walk time of 325between 15 and 20 min, with values of 9.1% for brewpubs/taprooms and 8.2% for regional/microbrew-326eries. At a walk time beyond 20 min, the price premiums decline consistently for brewpubs/taprooms, 327reaching 2.6% at walk time of between 35 and 40 min. In contrast, the price premiums attributable to 32813 of 22329All craft breweries330Brewpubs/taprooms 331only332Regional/333microbreweries only334logSQFT3350.7124*** (0.0549)3360.7148*** (0.0539)3370.7157*** (0.0545)338bedrooms339−0.0403*** (0.0101)340−0.0397*** (0.0102)341−0.0405*** (0.0103)342fullBaths3430.1023*** (0.0096)3440.1021*** (0.0097)3450.1009*** (0.0102)346halfBaths3470.0650*** (0.0167)3480.0655*** (0.0165)3490.0661*** (0.0162)350distanceCBD351−0.0102 (0.0151)352−0.0176 (0.0157)353−0.0206 (0.0134)354i.distBrew_0to0.5km355−0.0139 (0.0188)356−0.0094 (0.0197)357−0.0623* (0.0301)358i.distBrew_0.5to1km359−0.0346* (0.0166)360−0.0478* (0.0213)361−0.0124 (0.0175)362i.distBrew_1to1.5km363−0.0366+ (0.0189)364−0.0355+ (0.0191)365−0.0444** (0.0168)366i.distBrew_1.5to2km367−0.0044 (0.0317)368−0.0021 (0.0328)369−0.0073 (0.0131)370i.distBrew_2to2.5km3710.0205 (0.0366)372−0.0095 (0.0218)3730.0346 (0.0241)374i.distBrew_2.5to3km3750.0652 (0.0557)3760.0088 (0.0453)3770.0209 (0.0256)378i.distBrew_3to3.5km3790.0952* (0.0416)3800.1438** (0.0434)3810.0388 (0.0334)382i.distBrew_3.5to4km383−0.1198** (0.0385)384−0.0952* (0.0419)3850.0350 (0.0561)386i.distBrew_0to0.5km × i.Post_0to0.5km3870.0368 (0.0339)3880.0327 (0.0427)3890.0505 (0.0411)390i.distBrew_0.5to1km × i.Post_0.5to1km3910.0302 (0.0289)3920.0201 (0.0349)3930.0247 (0.0311)394i.distBrew_1to1.5km × i.Post_1to1.5km3950.0575* (0.0284)3960.0323 (0.0313)3970.0737** (0.0236)398i.distBrew_1.5to2km × i.Post_1.5to2km3990.0742* (0.0297)4000.0624+ (0.0322)4010.0405+ (0.0230)402i.distBrew_2to2.5km × i.Post_2to2.5km4030.0377+ (0.0212)4040.0400* (0.0192)4050.0203 (0.0214)406i.distBrew_2.5to3km × i.Post_2.5to3km4070.0514* (0.0198)4080.0531* (0.0222)4090.0397+ (0.0224)410i.distBrew_3to3.5km × i.Post_3to3.5km4110.0193 (0.0184)4120.0031 (0.0190)4130.0905*** (0.0201)414i.distBrew_3.5to4km × i.Post_3.5to4km4150.0580*** (0.0168)4160.0411* (0.0175)4170.0907*** (0.0214)418Fixed effects: census tract, ZIP code, month419sold, year sold, year built, story, style420Y421Y422Y423Num. Obs.42423,42642523,42642623,426427R 24280.7834290.7814300.783431Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.432+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.433T A B L E 4 434Regression results for row houses (distance).435436437===== PAGE 14 (score 104, numeric-paren 83, table-words 0, var-words 8) =====438439ZHOU et al.440regional/microbreweries increase to 12.9% for a walk-time between 20 and 25 min, and remain fairly 441consistent (ranging from 11.0% to 13.4%) at walk times between 25 and 40 min.4426 | DISCUSSION AND CONCLUSION443In this paper, we set out to investigate whether and how the opening of a craft brewery affected the 444value of residential homes in the city of Denver, Colorado. We examined three different housing types 445(single-family homes, row houses, and condominiums), three categories of craft breweries (all craft 446breweries, regional/microbreweries, and brewpubs/taprooms), and two measures of proximity (Euclid-447ian distance and walk time). Our results show that housing values do exhibit an increase after a craft 448brewery opens in a neighborhood. Furthermore, proximity to a craft brewery has the greatest posi-449tive impact on the values of single-family homes. This is consistent with the findings or Nilsson and 450Reid (2019) in Charlotte, North Carolina. With respect to the value of single-family homes, we find 45114 of 22452All craft breweries453Brewpubs/taprooms 454only455Regional/456microbreweries only457logSQFT4580.8709*** (0.0432)4590.8711*** (0.0432)4600.8677*** (0.0435)461bedrooms462−0.0145 (0.0125)463−0.0128 (0.0125)464−0.0147 (0.0130)465fullBaths4660.0959*** (0.0165)4670.0944*** (0.0166)4680.0929*** (0.0171)469halfBaths4700.0793*** (0.0128)4710.0794*** (0.0124)4720.0830*** (0.0128)473distanceCBD4740.0064 (0.0385)4750.0033 (0.0391)4760.0015 (0.0385)477i.distBrew_0to0.5km4780.0569 (0.0922)4790.0780 (0.0939)480−0.1370** (0.0420)481i.distBrew_0.5to1km4820.0556 (0.0531)4830.0527 (0.0693)4840.1377 (0.0981)485i.distBrew_1to1.5km486−0.0904 (0.0882)487−0.0453 (0.0973)488−0.0962 (0.0709)489i.distBrew_1.5to2km490−0.0737 (0.0501)491−0.0665 (0.0597)492−0.0532 (0.0541)493i.distBrew_2to2.5km4940.1464 (0.1003)4950.0514 (0.0550)4960.2326* (0.1111)497i.distBrew_2.5to3km498−0.0175 (0.0579)4990.0642 (0.0751)5000.0900+ (0.0521)501i.distBrew_3to3.5km5020.0582 (0.0508)5030.0321 (0.0439)504−0.1687 (0.1034)505i.distBrew_3.5to4km5060.0732 (0.0523)5070.0709 (0.0522)5080.1359 (0.1111)509i.distBrew_0to0.5km × i.Post_0to0.5km5100.0160 (0.0364)5110.0129 (0.0450)5120.0067 (0.0610)513i.distBrew_0.5to1km × i.Post_0.5to1km5140.0987* (0.0417)5150.1162* (0.0453)516−0.0828* (0.0401)517i.distBrew_1to1.5km × i.Post_1to1.5km5180.0798* (0.0398)5190.0728+ (0.0396)520−0.0408+ (0.0232)521i.distBrew_1.5to2km × i.Post_1.5to2km5220.0052 (0.0191)523−0.0150 (0.0249)5240.0880** (0.0296)525i.distBrew_2to2.5km × i.Post_2to2.5km5260.0497 (0.0322)5270.0503 (0.0343)5280.0702* (0.0295)529i.distBrew_2.5to3km × i.Post_2.5to3km530−0.0110 (0.0359)5310.0061 (0.0367)5320.0450 (0.0375)533i.distBrew_3to3.5km × i.Post_3to3.5km5340.0073 (0.0194)5350.0270 (0.0206)5360.0710* (0.0290)537i.distBrew_3.5to4km × i.Post_3.5to4km5380.1108*** (0.0231)5390.1158*** (0.0262)5400.0089 (0.0315)541Fixed effects: census tract, ZIP code, month542sold, year sold, year built, story, style543Y544Y545Y546Num. Obs.54753,25254853,25254953,252550R 25510.7845520.7845530.783554Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.555+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.556T A B L E 5 557Regression results for condominiums (distance).558559560===== PAGE 15 (score 8, numeric-paren 0, table-words 0, var-words 8) =====561562ZHOU et al.563evidence of distance-decay. For example, single-family homes within 0.5 km of a brewpub/taproom 564enjoy a 19.0% price premium over time, while those further than 2 km only enjoy a 3.9% or even 565smaller price premium. We also found evidence of distance decay when we used walk time as our 566measure of proximity.567One note on the magnitude of the positive effects is in order. The effects found from the model 568estimations are the cumulative ones post the opening of a new brewery and a following transaction, 569and that time span is on average 6.254 years. When considering the magnitude of these positive 570effects, it is important to look at them through the lens of a spanned time, rather than an instant effect. 571Average the statistically significant effects of the opening of a brewery leads to 0.41%–3.01% annual-572ized premium, which depend on the distance/walk time of a home to a specific type of craft brewery.573In contrast to single-family homes, row houses and condominiums do not appear to be bene-574ficiaries of this trend. This may be because the patrons of craft breweries are more likely to grav-575itate toward single-family homes. The typical craft brewery patron is generally younger and has a 576higher than average income. Many craft brewery patrons are also looking for family friendly envi-577ronments that complement single-family housing communities. Craft breweries have a reputation for 578being both child- and dog-friendly. In addition, many craft breweries are in redeveloping urban areas 579that may not have a large supply of condominiums or row homes in the neighborhood. Additionally, 580row houses appeal to couples under the age of 25 and over the age of 55 (Landis Construction, n.d.). 581Neither of these demographic cohorts are significant consumers of craft beer. Similarly, the majority 582of condominium owners are over the age of 50 (Rosen & Walks, 2013), and are a target market for 583developers of condominiums (Guillory & Moschis, 2008).584Our findings also indicate that beyond 0.5 km and/or a 10-min walk time the price premium was 585generally higher for regional/microbreweries than brewpubs/taprooms. This may reflect the fact that 586regional/microbreweries tend to have more prominent market visibility than brewpubs/taprooms. As 587noted above, regional/microbreweries depend upon off-site outlets such as supermarkets, liquor stores, 588bars, and restaurants for at least 75% of their sales. The beer brewed by a regional/microbrewery is 589more likely to be available throughout the city, hence providing these producers with a significantly 590higher level of name recognition. Brewpubs/taprooms in contrast, tend to serve more geographically 591restricted (often hyperlocal) markets, focused on their immediate neighborhood.59215 of 22593F I G U R E 4 594Impact of distance on price premiums for single family opens after the opening of a craft brewery.595596597===== PAGE 16 (score 125, numeric-paren 103, table-words 0, var-words 8) =====598599ZHOU et al.600Our findings support the growing body of literature, which view craft breweries as community 601assets, which contribute in a positive way to neighborhood quality of life. Serving as neighborhood 602Third Places, craft breweries generate positive externalities, valued by community residents. The 603inclusive nature of craft breweries (children and dogs are generally welcome) make them especially 604attractive to a younger demographic. Thus, single-family homes in proximity to a craft brewery enjoy 605a price premium. While local policy makers and planners in Denver and other cities across the country 606generally recognize the value that craft breweries bring to the socio-economic life of neighborhoods, 607this research provides additional fuel in support of this perspective.608Our findings are consistent with those of Nilsson and Reid (2019). In their study of Charlotte, 609North Carolina, they found that single-family homes within half-a-mile of a microbrewery enjoyed 610a price premium of 9.3%. In the case of Denver, single family homes between 1 km (0.6 miles) and 61116 of 22612All craft breweries613Brewpubs/taprooms 614only615Regional/616microbreweries only617logSQFT6180.6314*** (0.0278)6190.6319*** (0.0280)6200.6296*** (0.0277)621bedrooms622−0.0190*** (0.0039)623−0.0186*** (0.0039)624−0.0185*** (0.0040)625fullBaths6260.0850*** (0.0058)6270.0851*** (0.0058)6280.0851*** (0.0058)629halfBaths6300.0584*** (0.0065)6310.0586*** (0.0065)6320.0588*** (0.0066)633distanceCBD634−0.0335* (0.0129)635−0.0345** (0.0127)636−0.0425** (0.0129)637house638−0.0230 (0.0328)639−0.0345 (0.0362)640−0.0260 (0.0606)641rowhouse6420.1565*** (0.0311)6430.1556*** (0.0311)6440.1514*** (0.0315)645i.walkBrew_0to5min646−0.0053 (0.0179)647−0.0161 (0.0212)6480.0251 (0.0299)649i.walkBrew_5to10min650−0.0115 (0.0232)651−0.0077 (0.0261)652−0.0441+ (0.0243)653i.walkBrew_10to15min6540.0115 (0.0157)6550.0332* (0.0165)656−0.0233 (0.0204)657i.walkBrew_15to20min658−0.0250+ (0.0145)659−0.0259 (0.0165)6600.0059 (0.0260)661i.walkBrew_20to25min662−0.0105 (0.0099)663−0.0075 (0.0106)664−0.0499*** (0.0144)665i.walkBrew_25to30min666−0.0142 (0.0197)667−0.0156 (0.0191)668−0.0037 (0.0154)669i.walkBrew_30to35min6700.0109 (0.0174)6710.0070 (0.0159)6720.0017 (0.0120)673i.walkBrew_35to40min6740.0139 (0.0265)6750.0073 (0.0206)6760.0064 (0.0165)677i.walkBrew_0to5min × i.Post_0to5min6780.0450+ (0.0258)6790.0380 (0.0275)6800.1292* (0.0608)681i.walkBrew_5to10min × i.Post_5to10min6820.1092* (0.0471)6830.1036+ (0.0559)6840.1326** (0.0503)685i.walkBrew_10to15min × i.Post_10to15min6860.1105*** (0.0215)6870.1090*** (0.0211)6880.0544+ (0.0283)689i.walkBrew_15to20min × i.Post_15to20min6900.0840*** (0.0221)6910.0805*** (0.0233)6920.0613* (0.0303)693i.walkBrew_20to25min × i.Post_20to25min6940.0623** (0.0226)6950.0502* (0.0216)6960.0738 (0.0491)697i.walkBrew_25to30min × i.Post_25to30min6980.0504* (0.0209)6990.0283 (0.0208)7000.0646 (0.0401)701i.walkBrew_30to35min × i.Post_30to35min7020.0348* (0.0141)7030.0183 (0.0150)7040.0751* (0.0347)705i.walkBrew_35to40min × i.Post_35to40min7060.0276+ (0.0155)7070.0155 (0.0168)7080.0760** (0.0258)709Fixed effects: census tract, ZIP code, month 710sold, year sold, year built, story, style711Y712Y713Y714Num. Obs.715257,565716257,565717257,565718R 27190.7407200.7397210.740722Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.723+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.724T A B L E 6 725Regression results for all home transactions (walk time).726727728===== PAGE 17 (score 126, numeric-paren 106, table-words 0, var-words 7) =====729730ZHOU et al.7311.5 km (0.93 miles) of a regional/microbrewery brewery enjoy a price premium of 8.5%, with higher 732premiums for single-family homes in even closer proximity (Figure 4). 9 Both Denver and Charlotte 733are cities with growing populations. Future research, which looks at the impact of craft breweries on 734cities not experiencing population growth, such as so-called shrinking cities in the Midwest, would be 735both interesting and informative.73617 of 22737All craft breweries738Brewpubs/taprooms 739only740Regional/741microbreweries only742logSQFT7430.5034*** (0.0224)7440.5046*** (0.0226)7450.5024*** (0.0226)746bedrooms747−0.0195*** (0.0033)748−0.0196*** (0.0033)749−0.0194*** (0.0032)750fullBaths7510.0762*** (0.0051)7520.0764*** (0.0051)7530.0763*** (0.0051)754halfBaths7550.0620*** (0.0072)7560.0621*** (0.0072)7570.0621*** (0.0073)758distanceCBD759−0.0212+ (0.0121)760−0.0215+ (0.0120)761−0.0292* (0.0120)762i.walkBrew_0to5min763−0.0303* (0.0148)764−0.0327+ (0.0180)765−0.0315* (0.0131)766i.walkBrew_5to10min767−0.0235* (0.0110)768−0.0262* (0.0122)769−0.0103 (0.0136)770i.walkBrew_10to15min771−0.0243+ (0.0142)772−0.0122 (0.0181)773−0.0506*** (0.0148)774i.walkBrew_15to20min775−0.0182+ (0.0099)776−0.0103 (0.0108)777−0.0308** (0.0111)778i.walkBrew_20to25min779−0.0095 (0.0095)780−0.0099 (0.0109)781−0.0336* (0.0137)782i.walkBrew_25to30min783−0.0249+ (0.0138)784−0.0173 (0.0164)785−0.0093 (0.0109)786i.walkBrew_30to35min7870.0025 (0.0166)788−0.0064 (0.0150)789−0.0072 (0.0131)790i.walkBrew_35to40min791−0.0148 (0.0251)792−0.0165 (0.0176)793−0.0043 (0.0161)794i.walkBrew_0to5min × i.Post_0to5min7950.1607*** (0.0422)7960.1747*** (0.0492)7970.1857** (0.0594)798i.walkBrew_5to10min × i.Post_5to10min7990.1542*** (0.0320)8000.1678*** (0.0256)8010.1280* (0.0621)802i.walkBrew_10to15min × i.Post_10to15min8030.1044*** (0.0190)8040.1048*** (0.0191)8050.1056** (0.0352)806i.walkBrew_15to20min × i.Post_15to20min8070.0858*** (0.0186)8080.0873*** (0.0230)8090.0786* (0.0310)810i.walkBrew_20to25min × i.Post_20to25min8110.0851*** (0.0164)8120.0689*** (0.0182)8130.1209*** (0.0340)814i.walkBrew_25to30min × i.Post_25to30min8150.0560*** (0.0155)8160.0400* (0.0173)8170.1207*** (0.0274)818i.walkBrew_30to35min × i.Post_30to35min8190.0469*** (0.0131)8200.0352* (0.0154)8210.1256*** (0.0190)822i.walkBrew_35to40min × i.Post_35to40min8230.0366** (0.0133)8240.0257+ (0.0138)8250.1041*** (0.0224)826Fixed effects: census tract, ZIP code, month 827sold, year sold, year built, story, style828Y829Y830Y831Num. Obs.832180,887833180,887834180,887835R 28360.7588370.7568380.758839Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.840+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.841T A B L E 7 842Regression results for single family homes (walk time).843844845===== PAGE 18 (score 148, numeric-paren 122, table-words 0, var-words 8) =====846847ZHOU et al.84818 of 22849All craft breweries850Brewpubs/taprooms 851only852Regional/853microbreweries only854logSQFT8550.7188*** (0.0531)8560.7192*** (0.0516)8570.7200*** (0.0531)858bedrooms859−0.0411*** (0.0102)860−0.0402*** (0.0099)861−0.0405*** (0.0100)862fullBaths8630.1024*** (0.0107)8640.1029*** (0.0108)8650.1006*** (0.0103)866halfBaths8670.0665*** (0.0164)8680.0666*** (0.0165)8690.0665*** (0.0164)870distanceCBD871−0.0278* (0.0120)872−0.0379** (0.0118)873−0.0346** (0.0131)874i.walkBrew_0to5min8750.0135 (0.0194)8760.0032 (0.0197)8770.0554* (0.0230)878i.walkBrew_5to10min8790.0147 (0.0203)8800.0138 (0.0232)881−0.0332 (0.0227)882i.walkBrew_10to15min883−0.0388 (0.0244)884−0.0287 (0.0268)885−0.0182 (0.0184)886i.walkBrew_15to20min8870.0143 (0.0422)8880.0048 (0.0470)889−0.0133 (0.0160)890i.walkBrew_20to25min891−0.0505* (0.0196)892−0.0436+ (0.0246)893−0.0451** (0.0171)894i.walkBrew_25to30min895−0.0051 (0.0240)896−0.0303 (0.0227)8970.0068 (0.0158)898i.walkBrew_30to35min899−0.0103 (0.0426)9000.0084 (0.0333)9010.0087 (0.0193)902i.walkBrew_35to40min9030.0920** (0.0309)904−0.0118 (0.0212)9050.0158 (0.0211)906i.walkBrew_0to5min × i.Post_0to5min9070.0567 (0.0441)9080.0986* (0.0494)909−0.0367 (0.0501)910i.walkBrew_5to10min × i.Post_5to10min9110.0533+ (0.0289)9120.0476 (0.0288)9130.0321 (0.0420)914i.walkBrew_10to15min × i.Post_10to15min9150.0692** (0.0244)9160.0628* (0.0294)9170.0530+ (0.0308)918i.walkBrew_15to20min × i.Post_15to20min9190.0406 (0.0283)9200.0135 (0.0327)9210.0941** (0.0356)922i.walkBrew_20to25min × i.Post_20to25min9230.0463+ (0.0253)9240.0300 (0.0306)9250.0731* (0.0314)926i.walkBrew_25to30min × i.Post_25to30min9270.0225 (0.0210)9280.0134 (0.0199)9290.0649+ (0.0341)930i.walkBrew_30to35min × i.Post_30to35min9310.0521+ (0.0295)9320.0368 (0.0335)9330.0783** (0.0282)934i.walkBrew_35to40min × i.Post_35to40min935−0.0026 (0.0119)936−0.0109 (0.0108)9370.0611* (0.0294)938Fixed effects: census tract, ZIP code, month 939sold, year sold, year built, story, style940Y941Y942Y943Num. Obs.94423,42694523,42694623,426947R 29480.7819490.7809500.781951Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.952+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.953T A B L E 8 954Regression results for row houses (walk time).955All craft breweries956Brewpubs/taprooms 957only958Regional/959microbreweries only960logSQFT9610.8589*** (0.0456)9620.8614*** (0.0456)9630.8463*** (0.0487)964bedrooms965−0.0112 (0.0125)966−0.0098 (0.0128)967−0.0102 (0.0133)968fullBaths9690.0951*** (0.0166)9700.0943*** (0.0169)9710.0988*** (0.0173)972halfBaths9730.0839*** (0.0123)9740.0837*** (0.0123)9750.0868*** (0.0130)976distanceCBD977−0.0156 (0.0341)978−0.0107 (0.0332)979−0.0142 (0.0394)980i.walkBrew_0to5min981−0.0012 (0.0414)9820.0027 (0.0483)9830.0093 (0.1116)984i.walkBrew_5to10min985−0.0026 (0.0936)9860.0151 (0.0853)987−0.0398 (0.0495)988i.walkBrew_10to15min9890.1655 (0.1387)9900.1963 (0.1965)991−0.0320 (0.0490)992T A B L E 9 993Regression results for condominiums (walk time).994995996===== PAGE 19 (score 60, numeric-paren 49, table-words 0, var-words 3) =====997998ZHOU et al.99919 of 221000All craft breweries1001Brewpubs/taprooms 1002only1003Regional/1004microbreweries only1005i.walkBrew_15to20min1006−0.1027 (0.0787)1007−0.0614 (0.1000)10080.1640 (0.1509)1009i.walkBrew_20to25min10100.1252+ (0.0665)10110.1842* (0.0703)1012−0.1525 (0.0950)1013i.walkBrew_25to30min1014−0.1383** (0.0504)1015−0.1636*** (0.0466)1016−0.0648 (0.0491)1017i.walkBrew_30to35min10180.0122 (0.0383)10190.0269 (0.0402)10200.0569 (0.0499)1021i.walkBrew_35to40min1022−0.0225 (0.0717)1023−0.0321 (0.0658)10240.0566 (0.0881)1025i.walkBrew_0to5min × i.Post_0to5min1026−0.0182 (0.0541)1027−0.0270 (0.0620)10280.0591 (0.0897)1029i.walkBrew_5to10min × i.Post_5to10min10300.0394 (0.0389)10310.0361 (0.0421)10320.0369 (0.0519)1033i.walkBrew_10to15min × i.Post_10to15min10340.0712* (0.0328)10350.0844* (0.0366)1036−0.0427 (0.0294)1037i.walkBrew_15to20min × i.Post_15to20min10380.0642* (0.0271)10390.0672* (0.0328)1040−0.0560 (0.0594)1041i.walkBrew_20to25min × i.Post_20to25min1042−0.0022 (0.0274)1043−0.0233 (0.0290)1044−0.0007 (0.0445)1045i.walkBrew_25to30min × i.Post_25to30min10460.0556* (0.0228)10470.0349 (0.0283)10480.0696* (0.0291)1049i.walkBrew_30to35min × i.Post_30to35min10500.0191 (0.0163)10510.0093 (0.0171)10520.0633+ (0.0369)1053i.walkBrew_35to40min × i.Post_35to40min10540.0613+ (0.0360)10550.0558 (0.0366)10560.0710* (0.0308)1057Fixed effects: census tract, ZIP code, month 1058sold, year sold, year built, story, style1059Y1060Y1061Y1062Num. Obs.106353,252106453,252106553,2521066R 210670.78310680.78310690.7821070Notes: Sample restrictions: transactions' sale price ≤$5,000,000. Standard errors are clustered at the census tract level.1071+p < 0.1, *p < 0.05, **p < 0.01, ***p < 0.001.1072T A B L E 9 1073(Continued)1074F I G U R E 5 1075Impact of walk tme on price premiums for single family opens after the opening of a craft brewery.107610771078===== PAGE 20 (score 13, numeric-paren 0, table-words 2, var-words 9) =====10791080ZHOU et al.1081ACKNOWLEDGMENTS1082The authors have nothing to report.1083CONFLICT OF INTEREST STATEMENT1084The authors declare no conflicts of interest.1085DATA AVAILABILITY STATEMENT1086The data that support the findings of this study are available from the corresponding author upon 1087reasonable request.1088ORCID1089Neil Reid 1090 https://orcid.org/0000-0003-0520-10231091ENDNOTES1092 1 https://www.denvergov.org/Government/Departments/Department-of-Finance/Our-Divisions/Assessors-Of-1093fice?BestBetMatch=assessor%27s%20office|95c94ae0-247e-4b0c-b511-f9439cc122bd|c4f1b630-3cf4-4ec1-8110-1094c4784b6aa32e|en-US.1095 2 https://www.pubquest.com/search-page?keys=DENVER.1096 3 http://denverbreweryguide.com/breweries.aspx.1097 4 Home transactions with a price higher than 5 million US dollars are dropped in the analysis, as those transactions with 1098extremely high prices are outliers. About 900 more observations are dropped due to the lack of information on the year 1099built and the numbers of bathrooms. This leaves the total home transactions to 257,565. Including those transactions 1100does not change the results meaningfully.1101 5 https://docs.microsoft.com/en-us/bingmaps/rest-services/locations/.1102 6 Both regional breweries and microbreweries are craft breweries that sell at least 75% of its beer off-site and distribute 1103their beer to bars, restaurants, grocery stores, liquor stores, and other retail outlets. Brewpubs and Taprooms depend 1104upon on-site sales for at least 25% of their beer sales, while the Brewpubs also operate a kitchen for on-site food sales 1105(Brewers Association, 2022).1106 7 Note that we also attempted different Euclidean distance or walk-time bins, for example, 100 m, 1 km, 15 min, or 110730 min, among others, to test the robustness of distance/time choice. The general patterns of the results are compara-1108ble, and they are available upon request.1109 8 We use the e coefficient-1 conversion (Halvorsen & Palmquist, 1980) to calculate the effect of dummy variables in these 1110semilogarithmic equations.1111 9 In comparing the results of Charlotte and Denver we use regional/microbreweries because 20 of the 21 in the former 1112study were microbreweries.1113REFERENCES1114Brewers Association. (2022). Craft beer industry market segments. https://www.brewersassociation.org/1115statistics-and-data/craft-beer-industry-market-segments/1116Butler, S. M. & Diaz, C. (2016, September 14). “Third places” as community builders. The Brookings Institution. 1117https://www.brookings.edu/blog/up-front/2016/09/14/third-places-as-community-builders/1118C + R Research (2018). Survey reveals factors driving craft beer growth. https://www.crresearch.com/blog/1119survey-reveals-factors-driving-craft-beer-growth1120Colliers International. (2015). Craft beer pours into commercial real estate. US Research Spotlight Report. https://docu-1121ments.pub/document/craft-beer-pours-into-commercial-real-estate-contract-brewing-company-a-business.html?1122Craft Beer & Brewing. (2023, January 7). Best in beer 2022 readers’ choice: Your favorite beer cities. https://beerand-1123brewing.com/best-in-beer-2022-readers-choice-your-favorite-beer-cities/1124Dow, C. (2018, June 18). Treat yourself to a little me time with a yoga and beer class. Colorado Parent. https://www.1125coloradoparent.com/yoga-beer-classes-denver/112620 of 221127