A local institution revered by film critics and loved by the general populace, Sundance Film Festival is one of the most awaited celebrations of the year in Park City. Playing showcase to many up and coming directors, as well as artistic works from some of the most popular filmmakers in the industry, Sundance attracts nearly 50,000 people per year – a number that grows with each year’s smashing success. As expected, the popularity of this incredible festival bolsters tourism in the area and injects excess spending into the local economy, aiding small businesses and large chains alike. However, there is one other benefit to hosting Sundance Film Festival on a yearly basis: the increase in property values.
The Economic Impact
In 2015, the Sundance Film Festival had a noticeably large impact on the local economy. According to Sundance.org, a total of 46,107 people attended the festival last year; this led to a total of 57.2 million dollars in spending by nonresidents – generating roughly $63.2 million in Gross State Product. However, what’s truly interesting is the amount spent on lodging throughout the entirety of the festival. In 2015 alone, nearly $30 million was spent on lodging, and out of that 26.4% went towards condo and private home rentals. Though Park City is a hot bed for vacation rentals of all kinds, this is a major increase in income during a very short segment of the year, leading to some interesting results in the real estate market!
An Indirect Benefit
If you own vacation properties in the area, Sundance Film Festival can be a major source of revenue, improving the value of your home and allowing you to rent your home for more – particularly if your home is nearby the festival grounds. Even more importantly, this influx in renters creates a property demand in the areas surrounding the Sundance Film Festival, driving up property values even more as investors fight to create bigger and better vacation homes nearby.
On top of this, according to Sundance.org, 32% of attendees at the Sundance Film Festival were locals – meaning that the festival not only drives a demand for out-of-towners and vacationers, but also is a benefit for those who wish to live near the festival. In fact, the immense popularity of this festival is a major player in the demand for real estate in the Sundance area, which renders Sundance one of the more expensive neighborhoods outside of Park City proper – with the median property listings coming in at $420k in the area.
Sundance – A Benefit for All
Whether you’re looking to attend the festival as a vacationer, rent out your home as a vacation rental owner, or purchase a new home as an investor – or a newcomer – the Sundance Film Festival truly is a welcomed by all in Park City, Utah!
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