It’s been eighteen months since the soon-to-be Las Vegas Raiders announced the location of the team’s home turf near the south end of the Strip, just across Interstate 15 from the Mandalay Bay.
Taxpayers have a $750 million investment in the project, slated to cost $1.8 billion, according to Stadium Authority officials.
The arrival of professional football in Las Vegas is prompting commercial investment in the area surrounding the new home of the Raiders.
But is it going to make your home more valuable?
Probably not, say the experts.
Dr. Vivek Sah of UNLV’s Lied Institute for Real Estate says residential values will “definitely not” increase, “as they are linked to other factors mostly driven by expansion of the local economic base.”
Trulia, the residential listing service, looked in 2016 at five new stadiums and reported that “none, so far, has had a noticeable impact in raising home values in its immediate vicinity (a two mile radius).”
As the countdown to Raider football begins, home prices in Southern Nevada, which have been climbing since 2012, are leveling off. The median price of an existing home sold in October was $307,000, down 1 percent from September and up 4.1 percent from a year ago, according to the Greater Las Vegas Association of Realtors. The median price of condos and townhomes sold in October was $171,250, down 1.6 percent from October 2018.
The Current’s analysis of data from Salestraq.com reveals that with the exception of one zip code, most neighborhoods surrounding the stadium are in line with appreciation throughout Southern Nevada.
The zip code east of Allegiant Stadium, 89119, stretches north to Tropicana and east to Eastern Avenue. In 2018, the median price of existing homes sold increased from $142,500 to $185,000, or 29.8 percent, the largest percentage increase of any area in the valley that year, according to Salestraq.
Appreciation valley-wide in 2018 hovered just under double digits at 9.8 percent.
In the two years between January 2017 and December 2018, the median price of existing homes in 89119 increased 41.2 percent.
By comparison, appreciation throughout Southern Nevada reached 22.9 percent during the same period.
With the exception of 89119, homes in the neighborhoods surrounding the stadium appreciated in line with the rest of the valley.
The median price of existing homes sold in 89118, the zip code that includes the stadium, increased 14.1 percent in the two-year period, the lowest increase in the stadium vicinity.
The zip code north of the stadium to Tropicana and west to Rainbow, 89103, saw total appreciation in 2017 and 2018 of 23.8 percent.
Home prices appreciated 25.3 percent during that two-year period in the 89139 zip code south of the stadium.
The median price of homes in the area west of the stadium, zip code 89113, increased 23.4 in 2017 and 2018 combined.
Trulia found that of 31 neighborhoods with NFL stadiums, about two-thirds enjoyed higher appreciation than surrounding areas without stadiums.
Using data from Zillow, GoBankingRates.com reports that median home price listings in Inglewood, a suburb of Los Angeles, have increased 83.36 percent from $299,900 in 2014, when the Inglewood stadium project was announced, to $549,900 in February 2019. The median prices of existing homes in the Los Angeles area increased 39.8 percent during the same period.
According to Trulia, homes near AT&T stadium in Arlington, Texas, have lost value compared to others in the area since the facility opened in 2009, and home values near Lucas Oil Stadium have fallen below the values in greater Indianapolis since that stadium opened in 2008.
Stadium traffic can be a drawback to homeowners in the immediate vicinity and a reason to overlook good residential deals too close to the action, says the Appraisers’ Blog.