Doing your homework before making an investment can pay big dividends. Smart investors who bought homes in Sparks, Nevada over the last few years are probably jumping up and down over the major appreciation of real estate caused by Tesla building a battery plant nearby.
What happens when a flashy luxury carmaker decides to open a massive factory in a desert town?
Home sales and prices get a boost.
Tesla (Gigafactory outside Sparks, Nevada, in June 2014. But talk about a factory had been swirling before that.) started construction on the lithium ion battery producing
From the time the rumors began, the median home price in Sparks have shot up nearly 42%, according to ATTOM Data Solutions. During that same time period, home prices nationwide rose 31%.
CEO Elon Musk referenced plans for a Gigafactory in a November 2013 Tesla earnings call.
“We’re talking about something that’s comparable to all lithium ion production in the world in one factory. Big,” he said in response to an analyst’s question, according to a transcript of the call.
While he wasn’t specific with location details, speculation mounted.
In February 2014, Telsa shared a blog post that showed Nevada as one of four possible locations.
When complete, the factory will be almost six million square feet with an estimated 6,500 workers. It is estimated to reach full capacity in 2020.
And all those workers need a place to live. That’s why some local realtors attribute the town’s real estate activity to the factory.
Since Tesla started construction of the Gigafactory, home demand has jumped — sales increased an average of nearly 6% in each month since the June 2014….
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