Art and Economics
Topic:
The real estate market has become quite competitive in recent days. This has led to the need to develop a competitive advantage in that realtors now are making the houses look more artistic. Here, they hope to sell homes faster and at better prices. Thus, this paper seeks to define the relationship between art and house prices.
Questions:
Is there a relationship between artwork and the house prices?
Does the presence of more art in and around real estate properties mean more money?
Does the proximity to art institutions such as museums have an impact on house prices?
When does the procurement of art have an added intrinsic value?
Where and how does the artist benefit when it comes to higher house prices featuring art?
Does art sell real estate, or does real estate sell art?
Research:
Colman, N. “Art and real estate: The new relationship that’s selling big.” Arts, Features, Real Estate Trends. 2018. https://www.6sqft.com/art-and-real-estate-the-new-relationship-thats-selling-big/
The author of this article is a freelance journalist who writes about architecture, design, and real estate. She is professionally qualified to write about these as she has a master’s degree in the city program from the London School of economics. The article talks about how art makes a place feel more substantial. People who love art will purchase it for their houses, but they must have a functional space for displaying it. They do not want to buy art and then hide it out in their basement for lack of pace. Therefore, the article points towards the direction of good real estate going hand in hand with lovers of art. The bigger space, the higher the value of the real estate commodity.
Additionally, there are those houses that will have artwork in them as potential property owners seek to purchase. These houses are likely to have higher prices due to the beauty and the substantiality that the pieces of art add to the home. The article also notes that there is usually an interaction between art and architecture when purchasing or hunting down real estate properties.
Oehler, K., Sheppard, S., & Benjamin, B. “Buying into Bohemia: The Impact of Cultural Amenities on Property Values.” Center for Creative and Community Development. 2017
This article discusses the value of cultural amenities among them arts to urban development and, eventually, housing prices. The authors are well versed in the areas of urban sociology and community development. Kay Oehler has a Ph.D. in urban sociology, Sheppard is an economics expert while Benjamin is a director of real estate and community development. The article brings into perspective the value that art could bring to the urban centers and the contribution that it could make to gentrification. It is important to note that this article does not focus on art in specific real estate properties. Instead, it focuses on art within the community for the enhancement of real estate. More specifically, it talks about museums that have pieces of art in them. The argument is that if such facilities would be introduced into communities, then there is the likelihood of attracting potential art lovers. They would purchase properties and more so residential ones due to the proximity to the places that interest them. This means that the house prices would considerably rise, which means that art and cultural amenities may have a positive relationship with the house prices.
Pedro, K. “As Public Art Goes Up, So Do Nearby Home Prices.” Realtor.com. 2018. https://www.realtor.com/news/trends/public-art-holds-key-unlocking-real-estate-growth/
The realtor.com, which is the platform this article was posted on, is a trustworthy site that connects buyers and sellers of real estate properties after careful analysis. Kelly Pedro, the author of the article, has written for several years about livable cities and general urban development. The item is relevant for the research as it gives a clear example of the happenings in Chicago. The author narrates the state of Chicago before the city partnered with architects and developers. The result was a city with a public gallery and interactive public art. The article indicates that this created a ripple effect on the real estate market in the area. This means that there was the development of buildings, which in turn led to the rise in house and real estate pricing. The article also notes that the incorporation of art into real estate properties is a new trend. There is a realization that clients want more than just four walls when they are seeking property. Therefore, public art and interior art into properties is a trend that is not about to die down and will continue to influence the prices of houses on an upward scale.
Seresinhe, C.I., Preis, T., & Moat, H. S. “Quantifying the link between art and property prices in urban neighborhoods.” Royal Society Open Science. 2016
The common element among the authors of this article is that they are data and behavioral scientists. Therefore, they can study the different behaviors of human beings according to changing phenomena. Seresinhe adds on to the expertise of this group of researchers for this article as a digital design consultant. This means that the attempt to quantify the link between art and property neighborhoods is a thorough research in the hands of reliable scientists. The article discusses the issue of creative art industries and the role that they have towards the creation of thriving urban neighborhoods. This is relevant to the research, as it is imperative to determine the relationship between artwork and house prices. The article does not focus on the artwork inside the houses. Instead, the artwork on the outside, such as street murals. The argument is that these helped to enhance the image of even deprived neighborhoods. This means that investors get more interested in the area. They put up buildings, and the result is an attraction of the end consumer to the city. The house prices then go up.
Sheppard, S. “Museums in the Neighborhood: the local economic impact of museums.” Handbook of Economic Geography and Industry Studies. Giarattani, F., Hewings, G., and McCann P., (eds.), Edward Elgar, Cheltenham. 2013
Stephen Sheppard is an economics expert. He is also a director for advanced landscape learning at the University of British Columbia. Therefore, he is well versed in the issues of where art merges with economics. This article is particularly useful to the research as it provides specific insights into the usefulness of museums to neighborhoods. The reliability of the study is proven by the fact that there is the use of data from particular communities in the U.S. The research finds that museums increase the property values in their locations. Museums usually contain artistic features. The article notes that whenever there is the opening of a museum or the expansion of one for that matter, there are bound to be a rise in prices of properties.
Works Cited
Colman, N. “Art and real estate: The new relationship that’s selling big.” Arts, Features, Real Estate Trends. 2018. https://www.6sqft.com/art-and-real-estate-the-new-relationship-thats-selling-big/
Oehler, K., Sheppard, S., & Benjamin, B. “Buying into Bohemia: The Impact of Cultural Amenities on Property Values.” Center for Creative and Community Development. 2017
Pedro, K. “As Public Art Goes Up, So Do Nearby Home Prices.” Realtor.com. 2018. https://www.realtor.com/news/trends/public-art-holds-key-unlocking-real-estate-growth/
Seresinhe, C.I., Preis, T., & Moat, H. S. “Quantifying the link between art and property prices in urban neighborhoods.” Royal Society Open Science. 2016
Sheppard, S. “Museums in the Neighborhood: the local economic impact of museums.” Handbook of Economic Geography and Industry Studies. Giarattani, F., Hewings, G., and McCann P., (eds.), Edward Elgar, Cheltenham. 2013