It’s no surprise that there’s been ample talk about the Raiders’ upcoming 2020 move to Las Vegas—from what it will mean for tourism to how it will affect local life and, yes, parking on the Strip. Today, though, we wanted to look at the NFL’s arrival from an economic standpoint—both as it relates to the vitality of the local economy and as it relates to the price of land for sale in Las Vegas. Read on for recent stats and our top takeaways.
- Tourism dollars have a major impact on the Las Vegas economy.
No locale does tourism quite like Las Vegas—and this is especially apparent when we look at just how much tourism dollars affect the Las Vegas economy each year. As of 2018, tourism generated a record-breaking $57.6B in local economic impact—making it responsible for more economic activity than any other sector of Las Vegas’ economy. We also saw a 16.3% increase in the amount of money tourists spent while visiting the Valley from 2015 to 2016—in 2015, visitors’ direct spending totaled $30.5B (an average of $721 per visitor), as compared to $35.5B (an average of $827 per visitor) in 2016. The amount tourists are spending has leveled off in 2017 and 2018, but we can expect increases with Allegiant Stadium just on the horizon.
- The new Allegiant Stadium is projected to have a major impact on the local economy.
There’s no question that the $1.9B, 65,000-seat, domed Allegiant Stadium will have a major impact on the local economy—but the question lies in just how major that impact will be. A state-backed economic impact report calculates a total economic output of $620M (economic output refers to the combination of direct, indirect, and induced spending that flows into the Las Vegas economy as a result of the stadium). Of this, about $417M is estimated to be net new visitor spending—which would ultimately generate $35M in annual tax revenue. (According to some, this forecast is on the conservative side, as it doesn’t factor in locals who might spend money at the stadium or tourists who would have visited Las Vegas regardless of the events at Allegiant Stadium.)
- Las Vegas Property values are expected to increase—but only in certain segments and areas.
While the Raiders move to Las Vegas isn’t projected to kick off a Valley-wide housing blitz as many might have hoped, it is expected to have an impact on the luxury home and condo segments—as higher-end homes are likely to receive interest from Raiders players, executives, and staff. We also know that the “Raiders Effect” has played a major role in the value of Las Vegas property adjacent to and very near the stadium (no surprise there). With Allegiant stadium being a major anticipated magnet for tourist dollars, it makes sense that the surrounding Las Vegas property is quickly becoming a magnet for eager developers.
In fact, property values surrounding the stadium began to rise sharply upon confirmation of the Raiders’ move to the Valley—with industrial land in the area valued at 12 times the national average. (This sharp increase in land value is a trend the Sunbelt team saw immediately when we sold the largest parcel of undeveloped land adjacent to Allegiant Stadium at a record price—the land was valued at $3-4M prior to confirmation of the Raiders’ move, a number that doubled to $7.25M after the Raiders’ 2020 move to Las Vegas was confirmed.)
Overall, it’s no surprise that the arrival of Las Vegas’ first-ever NFL team—and the addition of the much anticipated stadium as a result—will affect both our local economy and, in certain real estate segments, Las Vegas property values all together. If you’re interested in learning more about current Las Vegas real estate market trends, browse our blog—or reach out to our team of Las Vegas land experts to chat buying, selling, or investing in Las Vegas property.