I
n the heart of Las Vegas, a family is raking in $10,000 a day from an empty plot of land without lifting a finger. The Elardi family, former owners of the demolished Frontier hotel on the coveted Strip, leases 16 acres to Wynn Resorts for $4 million annually. This lucrative deal has persisted for over two decades despite multiple failed development attempts. Wynn also covers pricey property taxes, making it an unusually cost-effective arrangement.

    This phenomenon is part of a growing trend on the Las Vegas Strip where landowners lease properties to developers for significant sums even when the land remains undeveloped. Michael Parks, a hotel-casino specialist with CBRE Group, finds it surprising that more such deals aren't seen. He's unsure why the Elardi family kept this portion of their property when they sold the Frontier in the 1990s.

    The Elardis have not commented on their deal, but Wynn Resorts has expressed interest in developing the leased land. However, CEO Craig Billings says the company is focused on other properties and can only do so many projects at once. The Elardi family's rental income from this vacant plot is a significant legacy for their grandchildren.

    As Las Vegas struggles with an acute shortage of affordable housing, residents feel failed by politicians who have let the city slip into decline. Home prices are skyrocketing, with the average house price now over $821,000 and rent 35% higher than in December 2019. Tourists are also feeling the pinch, with one visitor packing a collapsible kettle to make instant oatmeal due to exorbitant food prices.

    A Wall Street-backed corporate landlord has snapped up hundreds of homes in Las Vegas, adding to the city's housing woes. Invitation Homes now owns over 3,500 homes in Clark County, making it the second-largest owner of single-family rental homes.