The Effect of the Raiders’ Relocation to Las Vegas on Residential Property Values

Abstract

We examine the effect of National Football League’s Raiders organization relocation from Oakland, California to Las Vegas, Nevada on real estate properties. We focus on residential properties in Las Vegas, and two key dates: the announcement of relocation and inauguration of the Allegiant stadium. Using data from the Clark County Assessor’s Office, we employ a hedonic pricing model for single-family residential properties. Our results show differential effects across space and values. Residential properties closer to the stadium experience positive effects of the announcement, while those farther way experience negative effects. The effect of the across the conditional distribution is downward slopping for the announcement suggesting positive effects for properties in lower tail of the conditional distribution and negative effects for those in the upper tail. The inauguration has overall no statistically significant effect, suggesting the gap in prices from the announcement is closed.