Do an internet search for 2021 hot real estate markets and Las Vegas is always on the list. Homes and luxury condos are selling fast, prices are setting record highs and many buyers are paying cash.
“By all accounts, right now, the Las Vegas housing market is being fueled by low interest rates, a tight supply of homes for sale and a higher than usual volume of California buyers who are escaping to Nevada for lower taxes and more affordable housing,” said Uri Vaknin, a partner at KRE Capital LLC, which owns Juhl, the loft-style condominium community in downtown Las Vegas andthe twin-tower luxury condo community One Las Vegas on S. Las Vegas Blvd. “But a little context is necessary to fully understand the long-term resiliency of the Las Vegas housing market and its attraction to all segments of buyers including millennials, growing families and retirees.”
In a recent article, Dr. Vivek Sah, director of the Lied Center for Real Estate in the University of Nevada Las Vegas Lee Business School, discussed the city’s rise in visibility as an economic hub and its economic diversification with significant employment generation across multiple business sectors as key long-term drivers of the Las Vegas real estate market.
Dr. Sah notes:
“In the last five years, Las Vegas is getting the visibility it richly deserves for its location, income tax benefits, great airport connectivity, and climate. The relocation of the NFL’s Raiders, and the fairy-tale inaugural season enjoyed by the NHL’s Vegas Golden Knights has further brought attention to Southern Nevada as an economic hub that’s much more than a tourist and recreational destination. As we progress into this decade, we will surely see more companies in manufacturing, distribution, financial services, and health care relocate to Southern Nevada. This will continue to drive up the housing market and help it maintain its resiliency.”
So how is the current Las Vegas residential housing market being recognized on all those national lists of “hot real estate markets” that pop up during internet searches? It’s definitely a good investment and now is the time to purchase a single-family home or Las Vegas condominium as a permanent residence or second vacation home.
Zillow’s 2021 Hottest Housing Market: Las Vegas comes in at 10 out of 12 cities on this list, noting that buyers are entering the market from other states and investors are buying homes knowing they will earn money on the investment. A growing number of retirees, weather, no state income tax and relative affordability all contribute to the strength of the Las Vegas market. Despite the pandemic and its economic effects, Las Vegas maintained a 2.7 percent increase in population for 2021 over 2020.
Yelp/Zillow Top 10 U.S. Metros for Digital Nomads: With an eye toward destinations that boast a mix of outdoor adventure and city perks that are appealing to the many young professionals who have transitioned to the nomadic lifestyle due to their new-found ability to work from anywhere, Las Vegas hits the mark as number nine on the list. The city boasts the second-highest affordability index score out of all the other metros on the list plus “plenty to see and experience from hiking trails to shopping to exploring the Arts District of downtown Las Vegas.
Lending Tree ranks Las Vegas 39 out of 50 real estate markets with the most competitive buyers: While lower on the list of most competitive, there’s no doubt that whether it’s a Las Vegas luxury condo or a single-family house, the good homes go fast and often for cash as evidenced by recent sales at Las Vegas premier condominium communities like Juhl and One Las Vegas. (ADD CURRENT STATS from Juhl and One Las Vegas). According to the Lending Tree’s report, almost 60 percent of Las Vegas home buyers have credit scores 720 or higher.
Updater ranks Las Vegas as 2nd fastest growing city in 2020: According to the company’s researchers, as noted by KSNV-TV, Las Vegas was ranked second for net gains relative to its population size, moving six spaces up from last year. Most people migrated from cities like San Francisco, Los Angeles and Sacramento, Updater reported.
“As an affordability ceiling has been reached in the most expensive areas of the country like Los Angeles or New York, combined with people’s ability to work remotely, Las Vegas is the perfect solution for home buyers seeking relative affordable housing and a quality of life that offers great weather, low taxes and a wealth of quality of life options from outdoor activities to professional sports and of course world-class entertainment,” said Vaknin.