2022 is the year of the las vegas real estate market. Compared to the previous year, this year the housing market in Las Vegas has successfully reached new highs. The inventory rate is keeping decreasing. The availability of houses is low and can’t fulfill the demand.
The demand for houses keeps increasing, especially during a pandemic. Many people move to Las Vegas because of that to find a place where they can feel safe during that situation. Moreover, they came from more expensive areas, which means they have the financial capability to purchase a house in Las Vegas, where prices have been increasing. Therefore, many homebuyers for Las Vegas properties are cash buyers.
With an active real estate market like this, it is not wrong if the experts call it a new boom in the housing market. This trend is the highest market activity for the past 14 years. And, it happens in all kinds of house classes, from the cheapest one to the premium property. Isn’t it interesting? Here, we are going to find out more about this new boom in the las vegas real estate market. We hope you can use it as a reference for your future investment in Las Vegas.
Las Vegas Metro Population and Growth
Las Vegas is the largest population hub in Nevada. Despite that status, we can’t say that the growth rate of this city is also high. Based on the data from The United States Census Bureau, the las vegas metro population grew by only 19,000 people in the summer of last year. It is a 0.8 percent growth of its population. Compared to St. George, Utah, which is the area with the fastest population growth reaching 5.1 percent, Las Vegas is way behind.
Interestingly, Las Vegas has been showing higher population growth than the U.S. national population growth for more than 90 years. So, we can say that last year was the only year where the population growth in this area slows down.
Mostly, the population growth in Las Vegas comes from the people that move from other areas to find a better career, job, or entertainment. During the pandemic for the last two years, people couldn’t do that. Therefore, it is not surprising that the population growth in Las Vegas fall significantly.
However, we also see the current situation that could change that. The policymakers and governmental agencies in Las Vegas now are preparing for a new regulation to welcome people who will come to Las Vegas after the pandemic.
The new regulation will give many privileges and simplify the process of documentation, which many experts predict will boost the population growth for the next 40 years. And, it said that the population of Las Vegas will increase by at least one million residents in the future.
Several important factors that you also should know regarding the Las Vegas population are:
- The population of Las Vegas city is 671,000, while the Las Vegas metro area reaches 2.2 million.
- The population growth reaches 1.57% per year, 10% over the last decade, and over 20% for the past 20 years. Only last year, the growth fell significantly to 0.8%.
- The projected population growth for the next 10 years is 8.3%.
Furthermore, the Las Vegas location is also in the area that you can easily reach from Los Angeles, Salt Lake City, or Phoenix. It allows more people to visit this city and move in.
With all those population conditions, we believe that the las vegas housing market will keep growing. We can see the booming housing demand after the pandemic subsided. At least, this year, you can see a great change in the real estate market in this area.
Las Vegas Real Estate Market Condition
Even though the population growth shows not that good sign, however, the customer trust is still high in the housing market las vegas prospect. They believe that the real estate market will recover from the pandemic effect. And, it has shown the early sign of that from the housing sales last year.
The sales prices are increasing thanks to the buyer from other cities. We got this data from the Las Vegas Review-Journal. The increase is close to 22% year-over-year. Because of that, many people prefer to rent the property more than purchase them. What can you see from this situation?
It is a good sign for you who want to invest in las vegas real estate. You have a chance to make extra money by renting out your property. Moreover, with more people that will visit Las Vegas this year and the next years, we believe the demand for the rental property will increase. So, you should get one property this year, if you want to make more profit the next year.
The Price of Vegas Real Estate
Now, the other essential thing you also need to know to see the condition of the real estate market in Las Vegas is the housing price. We use the data from Zillow to find more about the las vegas housing prices here.
According to the Zillow Home Value Index, Las Vegas housing value is $384,931 by November 2021. This number shows an increase of more than 26% than the previous year. Surprisingly, if we take back to 2016, the price has increased by 88%.
However, the most important thing here is the median prices. This price will become your reference whenever you decide to buy a new property in Las Vegas or rent it. According to Realtor.com, the median price of a single-family home in Las Vegas is $395,000.
As we can see, the value from Zillow is not that much different than the data from Realtor.com. More importantly, the median price is higher than the national median price for a single-family home. The national median home price in the United States is $374,900. We can say that las vegas property has more value than the other cities and states.
What can we get from this number and its relation with the las vegas real estate market? It shows the value of the product itself, in this case, is the property. Unlike other cities with a low inventory of property, Las Vegas still has enough inventory to fulfill the demand.
The COVID-19 pandemic also doesn’t affect that much on the construction project for housing and other types of property. Even though it had been held a bit for its population to grow during the pandemic, after the situation is getting better, there will be a wave of people coming into Las Vegas. Thus, the demand will increase and the vegas housing market can fulfill that demand.
The high-value housing is a good sign for property investment. However, we can’t ignore another group of people that couldn’t afford that price. Thus, they prefer to rent a house, which has become the trend these days.
Regarding these renters, we also find several data that can show you the situation of the current real estate market in Las Vegas.
- According to Zumper, the median rent fee for a single-family home in Las Vegas is around $1,975 per month.
- This price is higher by 23% than the previous year.
- And, if we take back to three years before the pandemic, we can see that the increase in rent prices is around 39% per year.
Zumper also exposed that single-family homes dominate the total housing unit in Las Vegas at 63% of total property units. It seems that the contractor and the local government decided to provide and invite a new family to live in Las Vegas. That might be related to the effort to attract more workers and professionals to work and join in the Las Vegas development.
The strategy also seems to work. The vegas real estate for rent has reached almost half of the occupancy rate. It stays at 46% by the first quarter of 2022. That shows that many people are attracted to and accept this option. On the other hand, there are still many units available, which could become the booster for population growth in this area. Once again, that will also improve the real estate market size and transaction rate.
As for the best area where you can buy a home, Realtor.com also released information about two areas with the most expensive and most affordable median prices in Las Vegas. As for the most expensive property, you can find it in the Paseos, with median prices of $799,500. As for the most affordable, it is the property in the East Las Vegas that has a median price of $259,000
Other than the average home price in las vegas, we also need to know the living cost a person or family needs to live comfortably in Las Vegas. Why is it necessary? It will give you a clear image of what kind of people can live in this city. Furthermore, it also shows you the chance of the population to grow bigger, which also can make the real estate market more active.
According to PayScale, the living cost in Las Vegas is around $2,500 per month. That is 4% higher than the national average living cost. That means you need to make at least $30,000 annually if you want to live comfortably in Las Vegas.
Las Vegas Real Estate Market Forecast
How about the las vegas real estate market trends? According to Nevada Census data, there will be an increase in population for the next three years (until 2025). Therefore, the housing market in Las Vegas will keep becoming the hottest market, at least until the end of 2022.
Another las vegas real estate news you also need to know is the decrease in unemployment rates in Las Vegas. According to the Department of Employment, Training and Rehabilitation (DETR) March 2022 economic report, the unemployment rate by February is only 5%, which is 0.1% than before.
A lower unemployment rate means that there will be more people with jobs. It will increase the housing demand from them. And, it could be the best sign for the real estate market in this area. More houses get sold out, and the development process will continue.
Pro & Cons
- Property availability is very high. You won’t have a problem getting a property that you can buy.
- The property value in Las Vegas is high, which is the best type of investment.
- Many people choose to rent a property. If you own one, you can make extra income by renting out your house or building.
- Las Vegas is the center of entertainment. So, living here is one of the best things, because you will get the best way to relax and relieve your stress.
- The median prices for a home in Las Vegas are high. It can give you problems when you want to buy or start a property investment.
FAQ for Las Vegas Real Estate Market
- Will housing prices in Las Vegas go down in the future?
Based on the population growth data and the housing market condition, it won’t go down. The housing market in Las Vegas will always be one of the hottest real estate markets in the United States.
- When is the best time to buy property in Las Vegas?
Currently, the inventory rate is low, which pumps up the prices. You might need to wait until, at least, the end of 2022 to start buying a house. the price won’t be going down, but you will have more chances to choose a house or property that matches your preference.
- Should I use a real estate agency to buy property in Las Vegas?
Yes, you should. They are professionals that help you with the transaction and avoid mistakes.
Las Vegas will always be the city of entertainment, where you need more money than you ever imagined to stay in this city. It is shown that home prices keep increasing, even though the inventory rate is getting better this year. And, the activity of the las vegas real estate market will keep increasing in the future, which is the best thing you can get for property investment.