How does a Casino affect Real Estate?

Question

How does a big casino affect rental properties? Do rents increase? I'm thinking the employees will have to live somewhere close by?

Angel Gutierrez · Answer

Go here and find out for yourself!

http://www.fdic.gov/bank/analytical/working/98-2.pdf

Jon Holdman · Answer

@Angel Gutierrez that reports cites an increase of money spent on gambling as a contributor to defaults on mortgages.  I don't see much, if any, relationship between that conclusion and the question @Steve Candor is asking.  If there is a relationship it would be that there will be more mortgage defaults near the area of a casino.  I think Steve's question is more direct.  Does having a casino nearby increase rents?  House prices?  Or does is push them down?  I know this question was discussed in an older thread but I don't recall the conclusion or even if there was one.

Karen Margrave · Answer

@Steve Candor  You'll need to provide more information. How big is the casino going to be? Is it in a populated area? From what I've seen in California with the addition of indian casinos, they have no effect on real estate. The employees are locals that already live in the area, etc. If it's going to be some mega casino, then there may be workers for specialized projects that come from out of the area, but most of them would probably stay short term, in hotels or cheap housing.

Angel Gutierrez · Answer

Jon,

If you read the whole $200,000 report the FDIC probably paid to the authors... what it all boils down to is that people will gamble the rent/mortgage/lunch/bus etc money A LOT more often than you think...

I live near several casinos half of the year and see the results all the time....

I believe the report.... do you?

Steve Candor · Answer

@Karen Margrave

Awesome.... I read a bunch and you just seemed to confirm what everyone else was saying. appreciate it.

How does a Casino affect Real Estate?

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