What does it mean for the Las Vegas luxury home market to have the Las Vegas Raiders for the 2020 season?
Let’s take a look. Last year we sold approximately 280 luxury homes in Las Vegas. The average NFL player salary is about $2,000,000. An NFL team roster consists of 55 players and numerous coaches, managers, doctors, trainers and support staff. Let’s say we end up with 80 new luxury home buyers in our market all in early to mid 2020. In one single year we could have a 28% increase in the number of luxury home buyers! Further, we will have ongoing sales each year as players get drafted, traded, injured or retire. We might also receive an even greater influx of average price point buyers that are retirees and/or relocation buyers that decide to make Las Vegas their home now that it has TWO major professional sport franchises. Our local economy will also get a boost as the stadium is a $1.9 billion construction project. The 2017 total player salaries for the Raiders will be $148 million. That’s a lot of money to join into our local economy in not just housing, but entertainment, services, goods, food and enjoyment.
The owner of the Raiders, Mark Davis, is reported to have a net worth of $500 million. We will also enjoy at least 8 regular season games each year where fans may come and visit their team on the road in Las Vegas. This will mean full hotels rooms, casinos, restaurants and shops. The impact is win, win, win and could be more staggering than experts project. Let’s look at two top players on the Raider roster now, Michael Crabtree and Derek Carr. Michael Crabtree is projected to earn $8,250,000 in the 2019 season. Derek Carr will make $1,709,210 in 2017 and if he stays healthy and gets resigned likely similar numbers to his top receiver Michael Crabtree. Two luxury home buyers that will earn over $8,000,000 annually! I would anticipate either one or both to purchase a Las Vegas luxury home in the $4,000,000 to $5,000,000 price range.
Where do you think they will buy? Please email me your prediction where NFL Raider Derek Carr will purchase his Las Vegas luxury home. I will give away a free Ipad to the person who gets the neighborhood correct and is the closest in sales price to what Derek ends up spending. Email your guess to email@example.com
Go Silver and Black!