Craft Breweries and Neighborhood Crime: Are They Related?

Abstract

In their search for inexpensive real estate, many craft breweries have located in economically distressed neighborhoods. In many cases, breweries have contributed to the revitalization of neighborhoods. However, as a business that serves alcohol, some jurisdictions are concerned with potential negative externalities associated with craft breweries. One concern is a possible increase in crime. Using Portland as a case study, our purpose in this paper is to quantitatively assess changes in crime levels after the opening of a craft brewery. Using detailed data on calls for service to the Portland Police Bureau and brewery locations with their opening dates, we estimate the relationship between brewery openings and crime between 2012 and 2018. We control for brewery specific attributes, city-wide trends, and changes in neighborhood characteristics that may also affect crime levels. Our findings suggest that there is no significant change in crime around craft brewery locations post opening. However, the findings do provide guidance as to under which conditions brewery locations may be associated with relatively less or more crime. While breweries located in residential, industrial, or employment zones tend to be associated with less crime, breweries located in clusters in commercial zones tend to experience more crime.