Property Values

Stephen Crosby, Chairman of the Massachusetts Gaming Commission, does not want a casino in his town. His reason – a drop in his property value.[1]

The people living in and around Foxwoods casino thought the casino negatively impacted their home value. Three years after Foxwoods opened people were asked if changes in real estate value have been beneficial to them. Only 12% agreed with the statement.  [2]

There are a lot of conflicting numbers related to the change in residential property value after a casino is introduced to a community.  It is dependent upon proximity to the casino, socio-economic factors, traffic, and other influences.  What statistics generally show is that the lower end rental market will benefit from a casino.  This is due to the influx of lower end unskilled labor moving into the surrounding areas.  It can be deduced that the higher end of the housing market will be negatively impacted.  This is due to increases in traffic, crime, and impacts to schools.

The impact traffic increase has had on home values in Preston is dramatic. A recent revaluation of properties in Preston has shown home values for properties within a quarter mile of a state road are as much as (20 %) twenty percent lower than a similar home that is not close to the traffic of the casino. The financial impact for Preston homeowners is approximately $6,000,000.00.[1]

We looked at a list of 1,300 casinos in the United States.  We tried to find a non-tribal casino located in a town even vaguely similar to Milford. We found one. This  neighborhood consists of single family homes.  The approximate value of homes located within 1/3 of a mile is 10 million dollars and the casino is 1/3 the size of the proposed Milford casino. The average single family home value is $120,000.The average home value in the district where the casino is located is $75,000. Casinos do not end up in high rent districts.

The neighborhood surrounding the Milford casino has property consisting of single family homes and condominiums appraised at over 35 million dollars. If the casino were allowed, there is no telling what the effect on property value of this neighborhood would be.  Pick a number – no one really knows how property values would be impacted because a casino has never been built in a neighborhood similar to Milford’s.

The community host agreement has set aside $2.5 million to cover reductions in property values over a ten year time span.

Is it conceivable that real estate right next to a gigantic casino will only drop in value 7.5%?

[1] Casino Related Impacts on Preston,CT  December 18,2001

[2] Megaresort on My Doorstep: Local Resident Attitudes toward Foxwoods Casino and Casino Gambling on

Nearby Indian Reservation Land