Las Vegas Market Overview for May + News!
-- Real Estate Update --
Here's the latest real estate market report for May 2023 (single family homes) :
- Median Sales Price : $445,000 (April: $438,950)
- New Listings : 1,710 (April:1,621)
- Median Days on Market Until Sale : 18 (April: 24)
- Months Supply of Inventory : 2.0 (April: 2.3)
- What does "Months Supply of Inventory" mean? It represents the number of months it would take to sell all homes currently on the market at the current pace of sales. A balanced market is typically around 6 months of inventory, so a lower number represents a seller's market with limited inventory.
- Check out TheRooftopGuide.com's compilation of the 14 best rooftop bars in Las Vegas for an excellent selection of elevated drinking spots. Whether you're a Vegas expert or not, if you enjoy sipping your drinks with a stunning view, this list is definitely worth exploring. Cheers!
- The F1 street conversion project has progressed to the corner of the Strip and Flamingo, causing significant challenges for southbound traffic on the Strip and creating a nightmarish situation for those traveling east on Flamingo. It is highly recommended to avoid the area if possible. Stay tuned for updates on how the ongoing work might impact other parts of the city.
- According to a study by The Beer Institute reported by BeerInfo.com, Nevada ranks sixth in per capita beer consumption, with residents consuming an average of 35.8 gallons annually. This places Nevada behind North Dakota, New Hampshire, Montana, South Dakota, and Wisconsin, while Utah consumes the least amount of beer per capita.
- On May 8, 2023, Las Vegas high schools celebrated a major achievement as more players from their schools were selected in the NFL Draft than any other jurisdiction in the nation. Bishop Gorman led the way with three players, followed by Desert Pines with two, and several other schools also contributing to the impressive tally of 259 football players drafted from 243 high schools nationwide.
Have a great day!
Quote from @Logan M.:
I am bullish on Vegas
Hello @Logan M.,
I am bullish on Las Vegas too. Below is how I view Las Vegas as a real estate investor and owner of an investor services business:
What attracts investors to Las Vegas? Our client’s goal is a reliable passive income. By definition, a reliable passive income must be three requirements:
- Inflation compensation: Rental income increases faster than inflation, compensating for rising prices.
- Persistent income: Your income will last, ensuring that you and your spouse won't outlive it.
- Reliable income: Your income continues even in difficult economic times.
So I can provide specific comments, below is a general description of the properties and their locations that we target.
- 3+ bedrooms
- 2+ car garage
- One or two stories
- 1200 to 2000 square feet
- Generally cost between $320,000 and $475,000 today
As to locations, see the map below showing where most of our client’s properties are located.
Prices and rents are driven by supply and demand. What is the situation in Las Vegas?
Las Vegas is unique in that it is a tiny island of privately owned land in an ocean of federal land. See the 2020 aerial view below
There is little undeveloped private land remaining in the Las Vegas Valley. Any undeveloped land in desirable areas costs more than $1 million per acre. Due to the high cost of land, new homes in our targeted locations start at $550,000. The homes that appeal to our target tenant segment are priced between $320,000 and $475,000. Therefore, no matter how many new homes are built, our target housing segment remains almost constant. This differs from metropolitan areas with unlimited expansion potential, where the construction of new homes limits the growth of rent and home prices of existing properties.
The driver for housing demand is population growth. The average Las Vegas annual population growth is between 2% and 3%. Also, Penske Truck Rental provided a list of the top moving destinations. Houston was #1, Las Vegas was #2. So, the population growth rate is likely to increase.
What attracts so many people to move to Las Vegas? While there are several, the most important are jobs. In a study I did in January, I looked at two major job sites (Monster and Glass Door) for the number of open jobs in Las Vegas. According to these sites, there are between 26,000 and 31,000 open jobs in Las Vegas.
The number of available jobs will increase in the future. Depending on which study you read, there is between $18B and $26B of new construction under development. As these come online, they will create even more jobs attracting more people to Las Vegas.
There is another factor to consider and that is people and companies fleeing California. See the graphic below:
Of the companies that move to Las Vegas, a significant portion of the jobs match the tenant segment we've targeted since 2005. So, the demand for conforming properties priced between $320,000 and $475,000 will increase over time.
- Oakland A’s are moving to Las Vegas
- Formula 1
- Planned high-speed train from Los Angeles to Las Vegas in 2 hours
The combination of a fixed supply in our target price range and increasing demand almost guarantees that prices will continue to rise in the foreseeable future.