🏈 How the Super Bowl Impacts Real Estate

GM football fans and those that only watch for the commercials,

Today is Super Bowl Sunday, and to celebrate, I’m dropping some fun real estate stories related to the event.

For the uninformed that need a primer:

What: The Super Bowl - the biggest event in US sports!

Who: Philadelphia Eagles vs Kansas City Chiefs 

Where: Glendale, Arizona

Fun Fact: The average 30-second Super Bowl ad in 2023 is going for a record $7M!

Now, on to the good stuff.

Here’s what you will find in today’s email:

• Super Bowl Indicator : Why Super Bowl weekend is important to the Real Estate Market

• Chart: Super Bowl RevPar Records

• Stadium Construction : A look at Arizona’s State Farm Stadium

• Short Term Rental (STR) Trend: One-of-a-Kind Luxury Airbnb homes

• Market Comparison: Philadelphia vs Kansas City housing by the numbers Subscribe now

⚡ Super Bowl Indicator

Super Bowl weekend is widely considered the official kick-off of the spring home-buying season.

Some even call Super Bowl weekend the "Groundhog Day of real estate". The Redfin CEO has claimed that the levels of activity serve as an indicator of how the housing market will perform in the year ahead.

The Takeaway: 

The real estate and housing markets right now are being watched closely.

Economic signals are mixed, and this weekend could be a good indicator of what we may see over the upcoming year.

📊 Chart

This chart shows the hotel market in each Super Bowl host city, with occupancy, Average Daily Rate (ADR), and Revenue per Average Room (RevPAR).

The Takeaway: 

RevPar is the metric used in the hospitality industry to show what an average room makes when considering average market rate and occupancy.

If the projection holds, this Super Bowl is forecasted to have the second strongest RevPAR numbers in Super Bowl history.

First place goes to Miami in 2020, when the Kansas City Chiefs defeated the San Francisco 49ers.

🔨 Stadium Construction

Get ready for some football in the desert!

State Farm Stadium in Glendale, Arizona seats 63,400, with room for expansion for events like the Super Bowl - the event is expected to host nearly 73,000.

Built in 2006 by Hunt Construction Group for $455M, the stadium has hosted some major events, such as the Super Bowl in 2008 and 2015.

One of the real innovations of the stadium is that in addition to its retractable roof, it was the first stadium to build a retractable field! This means that grass can be grown outside and then it slides in on treads and sits on a steel and concrete tray. This allows the stadium to quickly convert from a natural turf field to its base concrete structure to host concerts and events.

Another recent innovation is the stadium will debut a 50k SF stadium wrap with 24 projectors that will project a 3-minute long video clip on the stadium itself to highlight the big game.

The Takeaway: 

While these giant stadiums are mostly concrete and steel, technological innovations like this retractable field and projection screen make for fun architectural case studies.

Often the big budgets that create these innovations can then be taken and applied at smaller scale. Wall-to-wall projection screen for my living room? Yes, please.

🏘 Short Term Rental Trend

Mark Jenney created RVShare, the Airbnb for recreational vehicles. Now, he’s moved on to creating these unforgettable one-of-a-kind Airnbnb experiences.

Want to host a gathering or event with your buddies, complete with pickleball courts, basketball, swimming pool, and mini golf?

Mark Jenney’s Airbnb properties have you covered.

The Takeaway: 

Mark Jenney is on to something with these properties. Many of them can sleep 15-20+ people for about $1k per night!

Not only is it a great deal, they are ideal for parties and events and nothing like this exists elsewhere in the market.

This is a new trend that will only grow. Expect to see more of these event and resort type properties that cater to larger gatherings.

🆚 Market Comparison

The Eagles are slight favorites to win this year’s big game.

When it comes to the housing market, who has the edge?

This article pits the two cities against each other to look at home affordability and housing supply and demand to evaluate the better market.

Kansas City:

 January median list price per square foot: $198

Median household income: $76,169 (average household income: $102,382)

January median days on the market: 88

Average monthly listings over the past year: 9,136

 January demand score: 26.1

Philadelphia:

 January median list price per square foot: $200

Median household income: $81,746 (average household income: $116,783)

January median days on the market: 73

 Average monthly listings over the past year: 21,025

 January demand score: 51.5

So who wins the current housing market battle: Philadelphia if you are a seller, and KC if you are a buyer.

The Takeaway: 

I’m less interested in these two markets and more interested in dissecting and interpreting the data to find hot markets.

When looking at a housing market, this article discusses some of the key indicators to watch: median income and median home price, and housing supply and demand.

While affordability in the markets look to be comparable, supply and demand is what sets these two markets apart.

Philadelphia has a tighter supply with homes remaining on market for less time, and a greater demand, making it better for sellers. Kansas City has a supply that remains on market for a longer period of time, with less demand, making it a buyer’s market.

That’s it for today - hope you learned some fun facts to show off at your Super Bowl parties.

If you haven’t done so already, please subscribe!

Catch you next week.