Neighbourhood accommodating new stadium (5)
I believe the answer is:
arena
'stadium' is the definition.
(eg a sports arena)
'neighbourhood accommodating new' is the wordplay.
'neighbourhood' becomes 'area' (a neighbourhood is an urban area).
'accommodating' means one lot of letters goes inside another.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'area' enclosing 'n' is 'ARENA'.
(Other definitions for arena that I've seen before include "Olympic venue?" , "Cheap Prom tickets" , "Sit around here being entertained" , "Entertainments venue" , "An era (anag.)" .)