What's the Value of a Music Venue in a Neighborhood? Let's Find Out

With market pressures pushing landowners in London to build pricey new flats, local music venues are getting the boot; but does this make sense economically?

2 minute read

October 14, 2015, 10:00 AM PDT

By jwilliams @jwillia22


Hackney Empire

Fin Fahey / Flickr

Given that over one-third of London's "grassroots music venues" have shuttered since 2007, CityMetric’s Shain Shapiro sat down to do the math on what exactly cities lose when their music venues close. Doing the complicated math based on best guestimates, Shapiro sits down with a friend, who happens to own a music venue in the London borough of Hackney, to see what the economic return would be if the property was redeveloped with four flats.

"Using our iPhone calculators, we tallied up that his venue contributes £694,000 to the local economy each year, outside of its independent takings as a business. Include those, and the amount rises to £1.3m.

Furthermore, this venue employs 12 people at the London living wage. In total, this venue is worth, theoretically speaking, as much as £2m a year to the local and national economy."

The property owner developing the property could expect approximately £2m in the sale of the units—but as Shapiro points out, that is a one-time profit, "not something that will be pumped into the economy year after year." The side benefits of attracting people to the neighborhood include support for local restaurants and infrastructure (through transit fees).

Further, there is the non-quantifiable value of having a music venue (or art venue, theatre, etc.) in the neighborhood. The current sales price of the flats reflects the value of having entertainment venues in the neighborhood, creating an attractive environment to live. Without those venues, would the value of the flats be as high?

Tuesday, October 13, 2015 in Citymetric

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today