The Las Vegas real estate market is off to a strong start in 2024 – a welcome development from a slow year for home sales in 2023. Las Vegas is seeing a competitive housing market. Several factors contribute to its allure as an investment destination, including:
- Importance as a Southwest economic hub
- Relative affordability
- Opportunity for growth and value appreciation
Housing prices in the city fell by 1% in January 2024. However, the growth in home sales compared to 2023 compensated for this drop. This suggests a promising 2024 for the market. Zillow reinforced this forecast with its list of the “hottest real estate markets in 2024”. Las Vegas ranked 12th on this list.
Current Las Vegas Market Scenario
Swiftly after the pandemic, mortgage rates doubled in 2022. This posed hurdles for homebuyers. Now, mortgage rates are stable, as is demand for real estate in Las Vegas.
Here are some key trends in the market so far:
Low Inventory Concerns
Las Vegas’ population grew from over 1.375 million in 2000 to 1.951 million in 2010, up by a whopping 41.8%, and rose further to more than 2.322 million in 2022. It’s no surprise that Las Vegas is one of the fastest-growing cities in the U.S.
With more people also migrating from nearby cities, there is increased competition among homebuyers. The recent drop in Las Vegas home prices has also incentivized more people to buy homes.
However, even with the lower home prices in Las Vegas, home ownership remains out of reach due to one major reason: a dwindling inventory.
There is a concerning shortage of housing supply in Las Vegas. Supply of single-family homes dropped by 10% in recent months. Aside from increasing competition, this makes it difficult for prospective home buyers to find a home in their preferred location or within their budget.
One of the reasons for the diminishing inventory is homeowners’ reluctance to sell properties. This is because they had purchased these homes at low interest rates during the pandemic. Experts hope that the low inventory issue resolves itself soon. Otherwise, you can expect property prices to rise throughout 2024.
An Uptick in Single-Family Home Sales
Single-family houses sold the most in recent months, totaling 1,518 in December. This reflects a 5.8% increase over the previous month. Along with sales, single-family home prices climbed by 5.9% over the previous year.
On the contrary, condo and townhouse sales prices are declining. The median sales price of these house categories dropped by $5,000 in the last month to $270,000. Despite the recent decline, these prices still indicate a 9.3% increase from the prior year.
Las Vegas Real Estate Trends Overview 2024
Over the last decade, Las Vegas continued to impress the nation with its high quality of life. There is especially a stark difference compared to places in surrounding states such as California.
Californians find the Vegas housing market more affordable, prodding many to explore relocation. Buyers from surrounding areas like Seattle and San Francisco have also shown similar interest. So long as this trend continues, Las Vegas home values will rise in 2024.
Here are some key Las Vegas real estate trends:
- In the summer of 2022, property values in the Las Vegas Valley skyrocketed to $427,350 but later declined by 1%. According to Zillow, the average home value in 2024 is $400,354
- The median home price in Las Vegas in January 2024 was $460,000, showing a remarkable rise from $374,900 in 2022
- Since December 2023, Las Vegas has over 6,000 active house listings, with 592 new homes for sale.
- The Las Vegas market is currently a seller’s market, with homes staying on the market for an average of 48 days. This is a dramatic decline from 69 days in 2022.
- The Las Vegas market is competitive, with average properties selling 2% below their listed price. 17.7% of properties sold for more than the listed price, indicating a year-over-year rise.
Reasons to Invest in the Las Vegas Housing Market in 2024
Here are several compelling reasons why you should consider investing in Las Vegas real estate for the long term:
Market Resilience
As a metropolis, Las Vegas is constantly reinventing and developing its numerous communities. New project efforts are emerging, preventing the real estate industry from becoming stagnant and outdated.
Over the last few decades, the city has shown great resilience. It bounced back from a string of economic slumps. This includes the 2008 recession crisis and the pandemic’s oppressive effects on the market in 2020-2021.
This suggests that the Las Vegas housing market can withstand future economic crises, making it a golden prospect for long-term investment.
Robust Economy
While the economy in Las Vegas faced some downturns during the pandemic, it is now back on track. Most people associate this city only with tourism. The reality is that Las Vegas has a diverse economy consisting of the following sectors:
- Technology
- Health and medicine
- Entertainment
- Education
- Gaming
- Conventions
Many of the above industries ensure that residents earn a stable income. This stability and economic diversity show that the city has a long-term growth mindset, which can benefit real estate investors.
Growing Population
Las Vegas saw roughly 30% of Californians relocating in 2022, based on U.S. Census Bureau Data. In the same year, Las Vegas ranked second among the top relocation destinations in the country. The Census Bureau reported a net migration rate of 6.46% from 2016.
Post the COVID-19 pandemic, this modern desert oasis is seeing a surge in population, all thanks to its:
- Economic resilience
- High quality of life
- Affordable cost of living
- Strong service sector
Another analysis by PwC supports this growing population trend. It suggests that Las Vegas’ population growth will be significantly higher than the national rate this year.
As a result, demand for housing has spiked and will continue to do so as more people move from other states. This presents an excellent chance for investors to invest in the city’s real estate for long-term gains.
Strong Rental Market
Rent for single-family houses increased by about 40% in the last four years. This statistic indicates a growing demand for rental homes in the city.
Zillow’s rental analysis describes the rental market temperature in Las Vegas as “warm.” It indicates a significant demand compared to the national average. The median rent in January 2024 was $1948, up $32 from the previous month.
Currently, the rental market appears to be stable. There are opportunities for investors to earn a passive and consistent income from short-term and long-term rentals.
Diverse Investment Options
If you’re a long-term investor, Las Vegas’ sprawling landscape offers several investment prospects. You can choose from a host of options to diversify your real estate portfolio, such as:
- A single-family home for rental purposes
- Commercial real estate
- Condo properties
Some of the most in-demand neighborhoods in Las Vegas that can bring profitable returns include:
- Summerlin: A fast-growing community and planned neighborhood, Summerlin has a distinct downtown area
- Henderson: A suburban neighborhood with a strong school system and potential for residential development.
- Downtown Las Vegas: An area with plenty of commercial real estate and rental income opportunities
- North Las Vegas: Away from the strip, this part of Vegas features affordable homes with a suburban feel
- Enterprise: Located close to the strip, Enterprise is home to sprawling parcels of land ripe for construction
If you’re keen on long-term real estate investments in Las Vegas, you’ll need to:
- Study market conditions
- Research property categories
- Consult with local market professionals to help you build a high-yield portfolio
Tax Benefits
Nevada residents benefit from some of the most favorable tax policies in the country. It has some of the lowest property taxes, with an average of 0.48%. The state does not levy any personal taxes. If you are a real estate investor in this market, you will save a lot of money and get higher returns.
Booming Infrastructure
Here are some examples of recent developments in Las Vegas:
- AC by Marriott Symphony Pak: A $95-million hotel project in Downtown Las Vegas
- Bluetech Park Las Vegas: A mixed-use facility in South Las Vegas Boulevard valued at $7.5 billion
- Las Vegas Academy of the Arts Renovation: This will include the construction of eight new buildings valued at $52 million
- The Resorts World Las Vegas: This mega-resort valued at $4.3 billion opened in June 2023
Great Expectations for 2024: Las Vegas Housing Market Forecast
Las Vegas is a thriving, global city known for tourism and entertainment. Over the years, it has become a rising destination for real estate investments.
The Las Vegas real estate market is showing signs of resilience and growth in early 2024. It is rebounding from a slow year in 2023. Many infrastructure projects are on the horizon. This shows great promise for long-term investors seeking stable returns.
