Elon Musk has planned a second SpaceX location for southern Louisiana (Pecan island area.) 100 billion dollar project which he refers to as a new Space Kennedy.
We all know Brownsville TX boomed in appreciation due to the proximity to the first SpaceX location.
Now that we know how much this company can increase home values, what do you expect to happen to south Louisiana? Lafayette is the closest major city to the build and could see major appreciation… but how much?
Also to anyone who has a rental in the area, are you excited for this or cautious?
New to Real Estate · Dallas, TX · Member since 2024 · 24 posts · 27 votes
1mo
I think Lafayette is positioned to benefit significantly, but I’d expect the appreciation to be more gradual than what we saw immediately around Starbase in Brownsville. A $100B investment with thousands of high-paying direct and indirect jobs is a pretty major economic catalyst.
For rentals, I’d be excited but more selective. The biggest opportunity may be getting into areas that benefit from the employment growth before the broader market fully prices it in. The key will be infrastructure, commute times, and how quickly the surrounding workforce actually grows imo.
Real Estate Investor · Memphis, TN · Member since 2016 · 405 posts · 132 votes
1mo
Ultimately, I will say, i dont know the area other than looking at it on a map. But whats happening here in memphis is something different. In terms of SpaceX vs XAi, I would venture to say, it depends on what the 100B will do specifically. In terms of ownership, XAi is now owned by SpaceX as 1 entity that does to very different things.
From a maps perspective, those small town nearby appear to be the best situated for an economic increase. I believe Musk would rather stay away from metropolitan areas as much as possible after the debacle here in memphis. Justin Pearson literally won an election based on his stance on XAi and Colossus 2. So what did Space X do, build another data center across the street in Mississippi.
I know that Starbase is more of the topic vs datacenters, but the same is true, small towns are better than cities. SpaceX goes where they are wanted. If Lafayette was them there politically then they will go there. but thats 1.5 hours away.