For over four decades, the Sundance Film Festival has been more than just a celebration of independent cinema—it has been an economic powerhouse for Park City, Utah. Every January, filmmakers, celebrities, investors, and cinephiles flood into the city, boosting its economy, transforming its real estate market, and solidifying Park City's place as a premier cultural and tourism destination.
But now, that might be changing. Discussions about relocating the Sundance Film Festival after 2026 have raised serious questions about how it could impact Park City’s real estate market. What happens to property values, rental demand, and investor interest if the festival moves to another state?
This article will break down:
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The history of the Sundance Film Festival and how it became one of the most prestigious film events in the world.
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The real estate impact Sundance has had on Park City and why it’s so significant.
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What could happen to Park City's housing market if Sundance relocates.
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What buyers, sellers, and investors should know moving forward.
A Brief History of the Sundance Film Festival
The Sundance Film Festival wasn’t always the globally recognized event it is today. In fact, its origins were humble and local.
Originally founded in 1978 as the Utah/US Film Festival, its purpose was to bring independent filmmakers to Utah while spotlighting lesser-known American-made films. The festival took off in 1981, when Robert Redford moved the event to Park City and rebranded it under his Sundance Institute, named after his famous character in Butch Cassidy and the Sundance Kid.
The festival’s reputation grew rapidly, becoming a launching pad for iconic films and careers. Movies like Reservoir Dogs, Little Miss Sunshine, and The Blair Witch Project all gained mainstream success after premiering at Sundance.
Today, Sundance is the largest independent film festival in the United States, attracting over 120,000 attendees each year. Its cultural impact is undeniable—but so is its economic and real estate influence on Park City.
How Sundance Has Shaped Park City’s Real Estate Market
It’s impossible to ignore the direct impact Sundance has had on Park City’s real estate market.
1. Property Values Have Been Boosted by Tourism Demand
Sundance accounts for nearly 45% of Summit County’s annual tourist revenue, generating over $130 million in economic output each year. That kind of tourism influx drives home values and rental demand, especially in areas close to festival venues.
Homeowners and investors in Park City have benefited from increased property values, as short-term rental demand surges during the festival. The presence of high-profile industry professionals and international guests has made luxury homes, condos, and investment properties more attractive, particularly in areas surrounding Main Street.
2. Rental Properties See Huge Seasonal Returns
One of the most significant impacts Sundance has had on Park City real estate is in short-term rentals.
During the festival, rental rates skyrocket, with some homeowners making an entire year’s worth of income in just two weeks. The demand for luxury vacation rentals, condos, and even single-family homes is exceptionally high, allowing property owners to charge premium rates on platforms like Airbnb and Vrbo.
Vacation rental prices during Sundance are three to five times higher than normal seasonal rates, giving property investors an incredible opportunity to cash in on short-term demand.
3. Increased Investment & Development in Park City
With its reputation as a luxury destination, Park City has attracted major real estate investments—many of which are directly tied to Sundance.
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Developers have built high-end ski-in/ski-out homes and luxury condos, knowing they appeal to festival attendees and second-home buyers.
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The festival's presence has helped solidify Park City as a prime location for real estate investment, similar to Aspen or Vail.
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Investors have prioritized properties near Main Street, Deer Valley, and Canyons Village, expecting strong appreciation rates and rental demand.
Sundance helped turn Park City into a year-round investment hotspot.
What Happens If Sundance Leaves? The Real Estate Impact
With Sundance’s contract set to expire in 2026, the festival is considering moving to another location, such as Boulder, Colorado, or Cincinnati, Ohio. If this happens, Park City’s real estate market could experience major shifts.
1. Decrease in Short-Term Rental Demand
Sundance is responsible for up to 80% of January’s short-term rental bookings in Park City. If the festival relocates, rental demand in January would plummet, leading to:
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Lower nightly rental rates
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Increased property vacancies
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Reduced income for Airbnb and Vrbo hosts
Property owners who rely on festival-driven rental income could see a significant financial impact if they don’t adjust their pricing strategies or attract new year-round visitors.
2. Home Price Growth Could Slow Down
With fewer festival attendees seeking to buy investment properties, demand for homes could level off.
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Luxury home prices in Park City have been partially fueled by investor speculation around festival-related rentals. If that demand disappears, appreciation rates could slow down or stabilize.
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Homeowners looking to sell may need to adjust pricing expectations, particularly for properties that catered heavily to festival guests.
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The shift wouldn’t necessarily cause a housing crash, but it could reduce the rapid appreciation rates Park City has enjoyed for years.
3. Shift in Investor Interest
With Sundance gone, investors may begin to look elsewhere for short-term rental opportunities.
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Areas with growing tourism sectors, such as Bozeman, Montana, or Lake Tahoe, could attract more second-home buyers.
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Investors may focus more on year-round rental markets, rather than seasonal luxury properties.
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Park City will need to reposition itself as a premier destination beyond Sundance, emphasizing its appeal as a ski town and summer retreat.
Final Thoughts: Is Park City Real Estate Still a Strong Investment?
While the potential loss of the Sundance Film Festival would be a major shift, Park City remains a highly desirable real estate market for many reasons.
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World-class skiing and outdoor recreation – Park City isn’t just about Sundance; it’s home to some of the best ski resorts in the world.
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Year-round tourism growth – The city has seen increasing summer and fall tourism, reducing dependence on a single event.
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Luxury appeal – High-net-worth buyers continue to see Park City as a premier destination for second homes and investment properties.
Will the real estate market shift? Yes. But will Park City still be an elite market? Absolutely.
If you’re a buyer, seller, or investor, now is the time to stay informed, analyze the trends, and make strategic decisions based on how Park City evolves post-Sundance.
Want to know how this affects your real estate investment strategy? Let’s talk.
