Many people enjoy visiting Las Vegas or other places with casinos because they want to try their luck. But what do casinos mean for real estate prices? If a casino moves into the neighborhood, it will change the entire dynamic of the real estate market.
Real estate could decline in price
There are two schools of thought regarding what happens to property values when a casino moves in. The first is that real estate in the area could decline in value. The Washington Post cites research by the National Association of Realtors on the impact casinos have on property values, which found that casinos can negatively impact their community. However, because of how many factors are involved, this won't always be the case.
In 2021, one of the biggest problems with owning property near a casino is if the casino doesn't keep its facilities up to date. New casinos could move in, taking a bite out of the first one. When properties fall into disrepair, the entire neighborhood is affected, especially when they are one of the area's main focal points. In the worst-case scenario, the casino could even close, which will send property values into freefall.
Sometimes property values near casinos fall because people don't want to live near them. However, that could mean a different type of opportunity. If the area becomes a tourist destination because of the casino, you could have a chance to become a landlord and make rental income.
Property values could increase
On the other hand, real estate in the area could increase in value. It depends on what kind of real estate you're talking about, but an increase in value is a genuine possibility. This is especially true for rental properties because the tourism industry usually receives a significant bump when a casino sets up shop.
However, if you're thinking about buying a rental property near a casino, you'll have to figure out how long it will be before you turn a profit. Airbnb provides an easy way for almost anyone to get into the rental industry. If you own a home in an area where a casino is being built, it might seem like a good idea to move somewhere else and rent that home out. Before you make any decisions, you should speak with an expert in the local real estate industry.
If you own the property free and clear and can afford to buy another home somewhere else, you might get more bang for your buck by renting out your current house when the casino moves in rather than selling it. However, the best course of action will differ greatly, depending on the type of casino, the geographical area, and other aspects of the local market. If you're thinking about using Airbnb, you should try to find other people in your area who rent properties through it to learn about their experiences before you dive in on your own.