What in the world is going on with Vegas house prices?

[Account Closed]

What in the world in going on with Las Vegas housing? Why are local housing prices up 20% in less than 4 months? To better understand current investment housing trends in Las Vegas you need to understand the simple economics of housing supply being kept artificially low by government policies and the pandemic.

I’m personally invested in detached single family residential real estate in Las Vegas along with being a property manager for Summerlin, Henderson and hand selected zip codes of Las Vegas. A few things that are impacting supply and demand and the recent 20% spike in housing prices here:

• 1) investors swarmed our market from 2010-2017. Almost half of detached single family homes are owned by cash investors and these rentals houses are occupied by Tenants.
• 2) There is a Governor mandated eviction moratorium through May 31st, 2021. Landlords cannot serve evictions notices to get Tenants out which is limiting our housing supply. This has been extended multiple times and there are concerns it may be extended again
• 3) The governor has also limited landlords from serving 30 day “no cause” notices to vacate. Landlords are having a hard time gaining control of their properties which is limiting supply
• 4) Some homeowner’s are terrified of COVID and would have wanted to sell but don’t want strangers entering their house (limiting supply)
• 5) As a real estate broker and property manager many houses are being sold and rented to people moving here from out of state for remote work or other reasons. We have a tremendous increase in demand
• 6)Shannon Chambers, president of Home Means Nevada, a state-affiliated nonprofit organization that assists homeowners, estimated that more than 8 percent of mortgage loans in the state are in forbearance, which she said is upwards of 100,000 loans.
• 9) CA residents are coming to Nevada for the low cost living, no state income tax and other reasons…this is pushing up demand. 

[Casey Powers]

@Yohannes Afework there is mortgage forbearance for landlords with federally backed loans. However they still have to pay for insurance, repairs, property tax, utilities in many cases, HOA fees, etc.

Landlords can still terminate rental agreements with 30 day notices here, but they are not allowed to use that as a “backdoor” way to evict people for nonpayment of rent. They can also still evict for other reasons such as lease violations, property damage, posing a threat to neighbors especially in multifamily properties.

As a local investor and property manager myself, it’s my business to know this stuff.