The ever-popular Las Vegas has always had a booming real estate market. With a slight stall last year, the market has once again picked up and started gaining momentum. Now that travel restrictions have lessened, travelers and home buyers alike are fleeing to places like Las Vegas in search of fun and action. This new-found energy is causing the housing market to grow quickly, with a need for homes and rentals.
Current Las Vegas Market Conditions
- The current housing supply is at just 1 month, the lowest it has been in recent years.
- Sale and rental prices for homes are at an all-time high, costing on average $345,000 to buy a single family house, and about $1,460 to rent.
- Although the cost of construction materials is up, builder sentiment is very healthy.
Buying a House in Las Vegas
Las Vegas Home Prices
Las Vegas Median Home Value: $345,000
National Average: $371,000
The prices of homes in this city are increasing at a steady pace, yet not quite as quickly as compared to the national average. In the last year, Las Vegas home prices have gone up a healthy 17.3%, while nationally the average has gone up 22.4%.
Las Vegas Housing Supply
As with the national average, the Las Vegas housing supply is low. Just a 1-month supply of homes can be found in Las Vegas. People are looking for affordable and convenient housing, along with nightlife and jobs—which they can find in areas like Las Vegas. This demand drives the sale prices of homes up. Buyers can expect to pay almost $150,000 more on average than 5 years ago.
Buying a Rental Property in Las Vegas
The appeal to rent in locations like Las Vegas is high. Now, with a decline in supply and increases in rent, owning a rental property is your best bet. Though you may pay more initially to purchase a house, the rental income is promising.
Las Vegas Rental Prices
Las Vegas Median Rent Price: $1,460
National Average: $1,704
The Las Vegas rental market has been on an upward trend the last few years. With rental prices at just over $1,000 in 2016, they have seen an increase of 11.3% year over year and over $400 per rental on average. The national average has increased only 3%. The Las Vegas rental market is a place that should be on every real estate investor’s map.
Las Vegas Rental Vacancies
Las Vegas Rental Vacancy: 2.8%
National Average: 6.8%
Rental vacancies in Las Vegas are at an all-time low at just 2.8%. Compared to the national average, it’s clear that Las Vegas is a city that needs more rentals for the high demand. Any real estate investor looking to purchase in Las Vegas should have no problem getting tenants in quickly and for top dollar.
Las Vegas Foreclosures
Las Vegas Foreclosure Rate: 0.4%
National Average: 0.3%
Foreclosure trends in Las Vegas are similar to the national average. Both are extremely low and down 0.1% in the last year. The few foreclosures out there would be great investments, as housing demand is high and supply is low. If an investor can come into town and find one of these foreclosures, they may be able to get a property at a great price with great profit potential.
Las Vegas Neighborhoods
Sandy Valley/Goodsprings is an excellent suburb of Las Vegas to live in if you are looking for a place where other professionals live. Its newer builds (mostly 2000s and newer) and spacious homes attract buyers looking for mid- to higher-priced homes (median of $361,770) in a less-populated neighborhood. The stable real estate market and diverse people make it a great place to call home.
Arden is another great suburb, full of spacious and newer homes (mostly 2000s and newer). It is a higher-priced town (homes averaging $440,192) with incomes 15% higher than other towns in the United States. Many families gravitate to this city because of the top schools and community feel. Most homeowners have professional occupations or sales and service jobs. The low crime rate, diverse culture and low vacancies (6.1%) are all driving factors to live in this town.
Bracken is a city to check out if you are looking for more affordable ($229,105 on average), apartment-style living. The majority of the population here are renters (paying about $1,300 per month). This area is predominantly large apartment buildings and high rises, with smaller apartments such as studios and 1-2 bedrooms. Residents here are lower-middle income, working in mostly fast food and service jobs. A lifestyle of affordability along with walkability and diversity is offered here.
Spring Valley has well maintained and established neighborhoods. Most of these homes were built in the 1970s, 80s, and 90s (with a median price of $272,385). With affordable rentals as well ($1,492 on average), a mixture of college students, as well as those employed in sales and service, call Spring Valley home. The decent walkability and safety, as well as amenities and friendly neighbors, explains why this urban city has such a low vacancy of 4.9%.
Las Vegas Economic Condition
As with most of the country, Las Vegas suffered a massive hit to its economy last year. For a city based on retail, entertainment and food service, the losses were unimaginable. As they slowly climb back to where they were before, Las Vegas residents hope for a full turnaround.
Las Vegas Unemployment
Las Vegas Unemployment Rate: 8.8%
National Average: 6.1%
Unemployment rates skyrocketed last year due to COVID, with businesses closing and travel restrictions in place. While the unemployment numbers are certainly still higher than past years and the national average, companies are working to open completely and hire workers back. Now that people can return to traveling, Las Vegas will once again become a hotspot for vacations, bachelor parties and spontaneous trips. Estimated job growth of 39% is expected over the next 10 years in Las Vegas, compared to the projected national average of 33.5%. Employment is already up 150.3K since this time last year.
Las Vegas Top Employers
The largest employer in Las Vegas is Encore, part of the Wynn Resort. Encore employs over 15,000 people and offers a myriad of amenities such as a salon and spa, golf, cooking and wine classes, soul cycle, pools and cabanas, dining, a casino, shops and much more. They also offer exclusive rates, rewards and packages.
The next largest employer is Nellis Air Force Base, with more than 12,000 employees and military personnel. The aircrew learns how to fly and fight here. They also regularly engage the community with tours and flyover displays.
The Las Vegas Metropolitan Police employs over 7,000 people. They offer protection, help and community trust. Major focuses for them are tourist safety and crime prevention. They also make sure you have the proper permits and licensing for concealed carry.
Las Vegas is also made up of many different hotels and casinos that offer thousands of job opportunities, entertainment and memorable experiences. Flamingo Las Vegas, MGM and Caesars are among the largest employers.
The Bottom Line on the Las Vegas Real Estate Market
After a tough year, the real estate market in Las Vegas is bouncing back and doing better than ever. Job opportunities and much needed vacations are helping this market claw its way back. With major demand for both homes and rentals, the Las Vegas real estate market could be looking at a long-term increase in sale and rental prices. Time to get into this market before it’s too late!