This study examines the net impact of the 2018 Winter Olympics on temporary housing prices in Gangneung, South Korea, from 2012 to 2023. Amid growing scrutiny of the Games' long-term economic sustainability, particularly in smaller, less urbanized regions, this study offers empirical evidence on localized housing market effects in a non-Western context and assesses the broader, often untested, economic and social benefits of the Olympics.
Employing the synthetic control method, this study compares rental prices in Gangneung with rental prices in non-host cities nationwide exhibiting similar economic and housing characteristics.
Contrary to expectations of economic gains from hosting the Games, the findings indicate no significant increase in monthly rent prices in Gangneung relative to other cities. In fact, rental prices showed limited change during the Olympics and in the immediate years following, challenging the notion that hosting such mega-events generates positive fiscal returns.
The findings offer important insights into the discourse on the intangible benefits of winter sport mega-events and provide lessons for planning sustainable future initiatives. They suggest that substantial public investment in the Winter Olympics may fall short of expected social and financial returns, especially after staging the events, underscoring the need for careful economic impact assessments in less developed communities.
