SANTA CLARA (KPIX 5 ) – As if things weren’t changing fast enough in Silicon Valley’s real estate market, the new Levi’s Stadium is shifting things into overdrive. The 49ers have yet to take the field in their new home, but the gold rush is already on in the neighborhoods surrounding the new park.
“The interest in Santa Clara today is really mind-boggling,” said Santa Clara native Myron Von Raesfeld, President of the Association of Realtors.
Von Raesfeld said the stadium is spurring a new era of development and wealth in his city.
“It’s a big halo,” he said. “When you put $1.3 billion into something I think it has an effect that really spreads.”
He says the stadium led directly to a recent $6.5 billion deal to develop an office, retail and entertainment complex and the Santa Clara Golf Course near the stadium. But the boom is also being felt in residential real estate.
A luxury apartment complex on Tasman Road, less than a mile from the new stadium, just set a sales record: half a million dollars per unit, about double the average condo price.
“While I won’t attribute 100 percent of that to the stadium, it is attributed to an economy and an area that has activity happening. And when you have activity, it’s like a domino effect, more happens,” said Von Raesfeld.
Zillow says homes in the area are spiking, up more than $20,000 on average in the last month alone. Some are going for as much as $800,000.
“[I] Bought it for 110, it’s now worth $650,000,” said a Santa Clara resident identified only as “Jim.” “I’m really happy.”
Santa Clara says the office and entertainment super complex won’t be finished in time for Super Bowl 50, but it is hoped that it will help lure a second Super Bowl to Levi’s Stadium.