Las Vegas Investment Property Market

Las Vegas Market Overview

The Las Vegas Metro area is home to over 2 million residents and is the largest city in the state of Nevada. While home prices in Vegas have risen nearly 80% since the recession, we note that the market was one of the most impacted during the recession, and home values are still 35% below their prior peak value.1

Las Vegas is projected to outperform other markets in the coming years. Las Vegas is expected to deliver some of the strongest home price appreciation (HPA) among U.S. markets. Home values in the market are expected to increase 19% by December 2019, compared to the values in December 2015. Rents are projected to increase 10% over that same period.2

Strong HPA Predictions and High Occupancy Rate

In addition to rising home prices, Las Vegas has one of the highest Single Family Rental (SFR) occupancy rates in the country. Currently, 96% of single family rentals are occupied in the area, making it not only a competitive market but also a market with good potential for steady cash flow.

Another factor that makes Las Vegas a great SFR market is that SFR properties make up approximately 1/3rd of the single family homes in the area. Las Vegas also has a healthy amount of resale properties which makes the supply of properties in this market relatively high. More broadly, Las Vegas is a renter's market with nearly 50% of residents renting homes vs. owning in comparison, nationally, 37% of residents rent homes.3

Economically, Las Vegas is a financial, commercial and cultural hub which supports job and population growth - both of which support momentum in the SFR market.
  • Strong HPA predictions
  • High occupancy rate at 96%4
  • SFR properties are approximately 1/3rd of single family rentals5
  • Slightly higher than average unemployment: Las Vegas' unemployment rate is 1.3% higher than the national average6
  • More than 41 million people visit Las Vegas each year.
  • The famous Las Vegas Strip is not located within the city limits of Las Vegas. The strip is actually under the jurisdiction of Clark County.
  • At 1,149 feet, the Stratosphere is the tallest observation tower in the United States and the second tallest free-standing structure west of the Mississippi River.
  • 1 Zillow
  • 2 John Burns
  • 3 National Multi-Family Housing Council
  • 4 John Burns
  • 5 John Burns
  • 6 Findthehome.com

Real Estate Investment Insights

Investment Style: High Appreciation
While each property will differ, this market is more likely to have properties where the value of the property is likely to increase over time.
Inventory:
Housing Market Statistics
Home Value *
$227,800
$200,700
National Avg
Home Value Growth (YoY)
9.4%
6.8%
National Avg
Rent **
-
$1,427
National Avg
Source: Financial data from Zillow includes single family, condo & cooperative homes, updated on 07/31/2017
Supply, Demand & Affordability
Job Growth (YoY)
3.7%
1.5%
National Avg
Household Growth (YoY)
2.5%
1.0%
National Avg
Estimated Months of Resale Supply
3.1%
4.3%
National Avg
Household Income
$52,300
$59,303
National Avg
Supply, Demand & Affordability data includes single family homes only, updated on 08/16/2017
  • Arrows indicate the directional change since the last update. No arrow indicates that there was no change in the data or no previous data is available.
  • * Home Value: includes all types of housing, including primary resident, condos, investment properties, etc.
  • ** Rent: includes all rental properties, including Single-Family Homes, multi family units, etc.

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