We might have just found out why the Mona Lisa is smiling – she’s been secretly helping real estate values soar.
A new study lead by economics professor at Williams College in Massachusetts, Stephen Sheppard, has found that the property values of homes near new museums can rise between 20-50% over a period of five years.
Sheppard’s prime example comes from Bilbao, Spain – which he now refers to as the “Bilbao effect.” With the Guggenheim Art Museum opening its doors in the port city back in 1997, the town has become a global international arts and luxury real estate destination!
According to The Wall Street Journal, Chattanooga, Tennessee has been experiencing the Bilbao effect. The average sales price of homes less than a mile from Chattanooga’s Hunter Museum of American Art back in July 2016 was $271,000 – as of now, these homes have surged to $573,000 in home value price.
It looks like museums are offering more than just stimulating conversation – they’re helping out your homes, too.
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