The Impact, a Professional Sports Team, Has on a Local Real Estate Market
Professional sports, i.e., their location and venues, all have a significant influence on the area in which they reside. That’s especially true for real estate.
Real estate prices are market driven, and all of that is connected to the outlook the people have. The prices can go up or down depending on the overall social perception.
In essence, a real estate investor can have a lot to gain from sports venues as these can cause the prices of surrounding real estate to increase. Studies conducted on the matter support the statement that there is a direct correlation between a sports venue and the cost of real estate in its vicinity.
The effect is there, but how does all of that work and what should you as a property owner and investor do?
Sports Venue Effect on Real Estate Prices
Professional sports are huge industries in the US, and a lot of the money earned goes to the creation of new stadiums and other sports venues.
However, the hard truth is that when these stadiums are built, most of the money earned goes directly to those involved with the stadium. Not much goes to the community surrounding the stadium, and neither does it go to the real estate market.
The indirect effect, on the other hand, is an entirely different matter. The very existence of a stadium has shown to increase the value of properties surrounding it. The increases in prices falter as you go further away from the stadium, but some effect is seen in the prices of real estate up to four miles away.
What’s more, even the very events can have an impact. By this, we mean the team that plays in the stadium and whether or not they win. If the local team wins several matches, the fans who usually live around their stadium will get happier, more optimistic, and they will start having more confidence in themselves. Such a confident feeling of the community can have a tangible impact on the industries around, even the real estate market.
If not that, a successful team and a new stadium cause the surrounding area to be more attractive to the people looking to move. The population of the regions around stadiums has a tendency to increase, which means that there are more potential tenants for the owners of the properties. The influx of people also means that the property prices will inevitably go up, benefiting you in the end once again.
A similar thing can be said for commercial real estate as the many people coming to the sports venue will look to spend their money which leads to the businesses around to earn more than usual.
The Bottom Line
All in all, the effects are clear and evident, be them direct or indirect. If you are a property owner looking to invest in new areas, your money certainly won’t go to waste if you decide to invest in both residential and commercial real estate surrounding sports venues.