Will Raiders Relocation Impact Las Vegas Luxury Home Market?

Will Raiders Relocation Impact Las Vegas Luxury Home Market?

The NFL is coming to Las Vegas.

And now, the question on every luxury real estate agent’s mind is: Can we sell more homes?

The answer is not quite as black and white as one may think. Or in our case, black and silver.

The Oakland Raiders were officially approved to become the Las Vegas Raiders a little more than a month ago.

The stadium funding is coming together, the league is behind it and the citizens, well, a little mixed.

The economic impact of an NFL team on a city is always debated. Yet, it’s used as a major bargaining chip when sports executives and municipal leaders ban together to lobby for a team.

The debate has merit. Historically, homes and businesses around existing stadiums have better resale value.

However, real estate around stadiums built in the last ten years isn’t holding true to that track record.

Image from Las Vegas Review Journal

Why is that?

Well, no one can put a finger on the exact reason. Real estate site Trulia did a study last year that reported:

  • Of the 31 neighborhoods around the nation’s pro football stadiums, nearly two-thirds have higher housing values, on average, than houses in non-stadium neighborhoods.
  • During the last 10 years, five new pro football stadiums have opened and none, so far, has had a noticeable impact in raising home values in its immediate vicinity (a two-mile radius).
  • Near Dallas, prices around AT&T Stadium have lost value compared to the greater Arlington, Texas, area since that venue opened in 2009.

Okay, so those facts may sting a little. But they are facts.

“Historically, homes and businesses around existing stadiums have better resale value.”

Yet, much of Las Vegas’s luxury property will not reside within that 2-mile radius of the Raider’s stadium, which will land at Russell Road and I-15.

For example, high-end Las Vegas Strip condos won’t need the stadium to hold their value. They already have the world’s greatest single-location entertainment mecca to drive their value.

It is fair to assume that team players and executives might very well be seeking property along Las Vegas Blvd. because it will offer exceptional convenience.

Despite the attraction of The Strip, a large percentage of Las Vegas luxury homes border the city’s valley edges, where views and large building lots are available.

Geographically speaking, Las Vegas isn’t that big, and our traffic pales in comparison to places like Los Angeles, the Bay Area, or eastern team locales like Boston and Chicago.

It’s then also fair to assume that big contract players would seek homes in places like The Ridges, Anthem Country Club, Red Rock Country Club, Green Valley Estates, Eagle Hills, Spanish Hills, Lake Las Vegas, and The Estates at Southern Highlands, among other luxury home communities in Las Vegas.

As a result, NFL players and Raiders’ executives can seek luxury living options along 215 and other Las Vegas commuting corridors and remain within 30 minutes of their locker room and practice facilities.

“It’s easy to assume that an NFL franchise would result in a boon for luxury agents”

It’s easy to assume that an NFL franchise would result in a boon for luxury agents, but the limited number of actual millionaires on a professional football team and the often short time-frames players are attached to a specific team won’t result in a major market swing.

Overall, agents at Century 21 GRE Fine Homes & Estates could expect to see a few new clients as the team begins to settle in and players seek places to call home, but we’re not expecting to sell out of our inventory.

Of course, we’re more than happy to.