Local Event Impact

How Festivals Influence Real Estate

By Katrina McDowell on Jul 5, 2024 in Marketing, News

Buying property is not just an investment. It’s a potentially lucrative venture that can significantly influence various aspects of life. Let’s explore how the impact of arts, culture, and local events can uniquely influence the real estate market for a promising return on investment.

Positive impacts. Popular events draw more visitors and potential buyers to the area, increasing the demand for real estate. For example, New Orleans is a vibrant music city with festivals like Jazz Fest and French Quarter Fest, which draw in thousands of visitors yearly and have a notable impact on the city’s real estate market. Jazz Fest has a ripple effect, with property values having a noticeable uptick, increased rental demand, and neighborhood development. It also fosters a strong sense of community pride and identity among residents of Mid-City and Gentilly neighborhoods, creating a sense of belonging and appeal for potential buyers.

Successful events. Signature summer festivals, like the Bonnaroo Music and Arts Festival in Manchester, TN, have positively impacted local real estate trends and the economy and demonstrate the long-term effects of annual events on the market. These events, which bring in millions of dollars in city-wide profit and create thousands of job opportunities, have a sustained influence on the market, providing a sense of security and confidence for potential investors in their long-term investments. Overall, these successful events are a driving force behind the appreciation of property values within the community.

Challenges and considerations. Temporary crowds and noise are potential downsides of living near event locations. Some locals may even leave town due to the increased tourism and traffic events bring with them. Buyers should evaluate these considerations and see if the temporary crowds and noise are worth the ROI. Market volatility in event-driven demand can lead to short-term market fluctuations. Strategies for buyers and sellers to navigate this volatility include investing with other people, thinking of real estate as a long-term investment, not a short-term windfall, and investing in technology and data analysis tools. These are critical in understanding changes in property values, market trends and potential investments.

Many people think real estate is about numbers, but it’s really about relationships. When times get demanding, real estate investors who cultivate relationships with other investors, brokers and contractors can better weather the storm. These relationships offer a wealth of knowledge, insights and advice, and investment opportunities. Remember to think about quality, not quantity.

Marketing. Market properties by emphasizing the financial benefits of their proximity to popular event venues. For instance, when the Toyota Music Factory was established in Irving, Texas, in 2017, it brought numerous businesses and apartment complexes to the area. Highlight these advantages to potential residents. The music factory plans to expand its space to enhance connectivity with concertgoers and restaurant patrons. Encourage property managers to participate in local events to build connections and networking opportunities, such as having a property booth during festivals. What better way to market and advertise than being at a festival?

As cities continue to embrace music and art cultures, the mutual relationship between festivals and real estate is poised to remain a key driver of growth and prosperity for years to come.