Should You Invest in Las Vegas Homes for Sale in 2022?

Experienced and beginner realtors alike should focus their attention on Las Vegas homes for sale in 2022 as the market is on a steady rise.

Table of Contents

1. The State of Las Vegas Real Estate Market in 2022
2. Las Vegas Homes for Sale Investment Strategy
3. 5 Best Las Vegas Neighborhoods for Traditional Rentals
4. 5 Best Las Vegas Neighborhoods for Airbnb Rentals
5. Should You Invest in Las Vegas Homes for Sale in 2022?
6. Conclusion

According to Realtor.com, Las Vegas is in the top 27% when it comes to the attractive and lucrative real estate markets in the US. Continue reading to find out how you can grab a slice of the Nevadan city’s thriving real estate market.

The State of Las Vegas Real Estate Market in 2022

The latest data shows that the median price of homes for sale in Las Vegas is around $430,000, representing a 26.5% year-over-year increase. The most affordable neighborhood is East Last Vegas, with a median listing price of about $315,540. On the other hand, the most expensive Las Vegas neighborhood is Paseos, with a median listing price of about $950,000.

Nevada Census data predicts a 1.51% rise in population until 2025 and a growth of 1.46% in median income during the same period. New homes for sale in Las Vegas are constantly coming to the market, but the demand is still stronger than the supply. It is bound to maintain the price strength of single-family units.

Las Vegas Homes for Sale Investment Strategy

It’s important to mention that the rental prices in Las Vegas are on an upward trend, too. Real estate investors who are looking into purchasing a Las Vegas investment property for sale should definitely consider an Airbnb strategy for their lucrative endeavors.

Even though the unemployment rate is a bit high, the record-low rates of rental properties seem to be all the trend. It is a clear sign that the Las Vegas rental demand is going strong, which is extremely beneficial for any realtor Las Vegas can attract. As the fastest-growing metro area in December last year, the median rent increased by 29.8%. On the other hand, the yearly median rent price growth came to 18.9%.

Now, the average rental rate for an apartment with one bedroom is about $1,300, which is 18% higher than in 2021. For example, the average studio apartment rent went up by 10% from just the last month, making condos for sale in Las Vegas a rather lucrative investment for potential realtors.

When we look at Las Vegas real estate, it’s clear that it makes perfect sense to make the most out of short-term Airbnb rentals. Aside from the numbers we mentioned, the fact of the matter is that there’s no off-season in Las Vegas when it comes to tourist attractions. What’s more, every year, about 43 million tourists come to Las Vegas. In that sense, you can’t go wrong with going with an Airbnb route.

Related: Las Vegas Real Estate Investment: The 2022 Investor’s Guide 

Airbnb Regulations in Las Vegas

Real estate investors who are already checking out the houses for sale in Las Vegas for the purpose of short-term rental investment should also be aware of the rules and regulations. It’s crucial to note that Nevada’s state legislature passed the AB363 bill, which should regulate and legalize short-term rentals in Clark County by July 1, 2022.

At the state level, there are some new parameters that future homeowners should pay attention to, such as the required distance between short-term rental units. It is of great importance for those interested in Las Vegas condos for sale. That said, the provisions are as follows:

• Short-term rentals (STRs) that use single-family properties should be 500 units apart minimum
• Single-family STRs should be 2,500 feet apart from the resort hotel
• Owners of STRs can have five permits maximum
• Multi-family property STRs need to have a 25% set cap
• All STRs should offer a minimum of a two-night stay, with the owner-occupied unit as an exception
• All multi-family units have a set limit of 16 maximum occupants
• Owners of STRs will have to pay a penalty for potential occupancy and noise violations
• The owner of an STR must have a local representative ready to manage potential rental issues 24/7

On the other hand, when we discuss the City of Las Vegas per se, providing short-term rentals is entirely legal as long as certain conditions are met. For instance, the owner of the property must register their Airbnb business, they should be at least 660 feet away from other STRs in the area, occupy the property, as well as pay a yearly fee of $500.

The Profitability of Traditional Rentals in Las Vegas

Even though Las Vegas is one of the hottest Airbnb markets at the moment, it’s still important to mention that certain city neighborhoods allow for a very profitable traditional rental strategy. There are several factors that can affect the real estate investor’s ability to steadily and securely make money by going the traditional route.

Population Growth

Currently, there are about 671,000 residents in Las Vegas and a total of 2.2 million in the entire metro Las Vegas-Henderson-Paradise area. The population growth is at 1.57% year-over-year in Las Vegas. The Clark County population went up by 20% in the last 20 years. The predictions indicate that the population will grow by about 8.3% in the next decade as well.

Also, many people are coming to Las Vegas because of its proximity to other major cities, such as Salt Lake City, Phoenix, and Los Angeles. The lack of state income tax and the area’s climate also make for an attractive incentive.

Job Growth

While it’s true that homes for sale in Las Vegas Nevada are increasing in price, more and more people are flocking to the city, thanks to its equally growing job opportunities. Just in the last three years, the Southwest states saw more than 100,000 openings in the manufacturing sector. Las Vegas Sun reports that Nevada makes up for 30% of those listings.

For starters, the unemployment rate in Las Vegas is only 5%. There is significant growth in many different employment sectors in Las Vegas. The sectors include trade and transportation, leisure and hospitality, information, as well as professional and business services.

In addition, the city is expected to witness a boom in other industries, such as healthcare services, creative industries, information and communication technologies, logistics technologies, and more.

Currently, the largest Nevada employers include the University of Nevada Las Vegas, the University Medical Center of Southern Nevada, and casinos like Bellagio and Wynn Las Vegas. It’s also worth mentioning the biggest tech companies in Las Vegas, such as GoWireless, Scientific Games, WaveAccess, and Zappos, to name a few.

Related: Why the Best Cities for Tech Jobs Can Be the Top Cities to Invest in Real Estate 

5 Best Las Vegas Neighborhoods for Traditional Rentals

If you’re looking for homes for sale in Las Vegas NV that would prove to be valuable for your traditional rental strategy, the following neighborhoods are definitely worth looking into. The real estate investing list is based on traditional cash on cash return, arranged from the highest to the lowest.

1. East Las Vegas

• Median Property Price: $315,540
• Average Price per Square Foot: $248
• Days on Market: 37
• Monthly Traditional Rental Income: $1,388
• Traditional Cash on Cash Return: 2.92%
• Traditional Cap Rate: 2.99%
• Price to Rent Ratio: 19
• Walk Score: 55

2. Downtown East

• Median Property Price: $407,825
• Average Price per Square Foot: $273
• Days on Market: 50
• Monthly Traditional Rental Income: $1,604
• Traditional Cash on Cash Return: 2.78%
• Traditional Cap Rate: 2.84%
• Price to Rent Ratio: 21
• Walk Score: 72

3. Winchester

• Median Property Price: $405,445
• Average Price per Square Foot: $230
• Days on Market: 54
• Monthly Traditional Rental Income: $1,658
• Traditional Cash on Cash Return: 2.59%
• Traditional Cap Rate: 2.65%
• Price to Rent Ratio: 20
• Walk Score: 54

4. Huntridge

• Median Property Price: $459,668
• Average Price per Square Foot: $275
• Days on Market: 45
• Monthly Traditional Rental Income: $1,579
• Traditional Cash on Cash Return: 2.47%
• Traditional Cap Rate: 2.52%
• Price to Rent Ratio: 24
• Walk Score: 54

5. Twin Lakes

• Median Property Price: $409,295
• Average Price per Square Foot: $241
• Days on Market: 40
• Monthly Traditional Rental Income: $1,400
• Traditional Cash on Cash Return: 2.35%
• Traditional Cap Rate: 2.42%
• Price to Rent Ratio: 24
• Walk Score: 17

5 Best Las Vegas Neighborhoods for Airbnb Rentals

If the short-term rental strategy seems the most appealing to you, Mashvisor has made sure to make the most lucrative Airbnb neighborhoods in Las Vegas readily available. Based on the cash on cash return (from the highest to the lowest), you can easily find the ideal investment property in some of the following neighborhoods.

1. West Las Vegas

• Median Property Price: $489,816
• Average Price per Square Foot: $276
• Days on Market: 33
• Monthly Airbnb Rental Income: $4,206
• Airbnb Cash on Cash Return: 7.59%
• Airbnb Cap Rate: 7.77%
• Airbnb Daily Rate: $181
• Airbnb Occupancy Rate: 57%
• Walk Score: 30

2. Downtown East

• Median Property Price: $407,825
• Average Price per Square Foot: $273
• Days on Market: 50
• Monthly Airbnb Rental Income: $3,616
• Airbnb Cash on Cash Return: 6.93%
• Airbnb Cap Rate: 7.09%
• Airbnb Daily Rate: $150
• Airbnb Occupancy Rate: 59%
• Walk Score: 72

3. Huntridge

• Median Property Price: $459,668
• Average Price per Square Foot: $275
• Days on Market: 45
• Monthly Airbnb Rental Income: $4,309
• Airbnb Cash on Cash Return: 6.84%
• Airbnb Cap Rate: 6.98%
• Airbnb Daily Rate: $187
• Airbnb Occupancy Rate: 58%
• Walk Score: 54

4. East Las Vegas

• Median Property Price: $315,540
• Average Price per Square Foot: $248
• Days on Market: 37
• Monthly Airbnb Rental Income: $3,201
• Airbnb Cash on Cash Return: 6.43%
• Airbnb Cap Rate: 6.59%
• Airbnb Daily Rate: $140
• Airbnb Occupancy Rate: 58%
• Walk Score: 55

5. Twin Lakes

• Median Property Price: $409,295
• Average Price per Square Foot: $241
• Days on Market: 40
• Monthly Airbnb Rental Income: $3,568
• Airbnb Cash on Cash Return: 6.39%
• Airbnb Cap Rate: 6.56%
• Airbnb Daily Rate: $217
• Airbnb Occupancy Rate: 58%
• Walk Score: 17

Related: What Is a Good Cash on Cash Return?

Should You Invest in Las Vegas Homes for Sale in 2022?

Now that you have all the information about Las Vegas real estate market, it should be obvious that it’s a rather lucrative and valuable area for all real estate investors. After all, the fact that Las Vegas is and always will be a huge tourist hotspot will remain the same. It will continue to attract hordes of tourists all year round.

Aside from being known worldwide for its abundance of entertainment options, new homes Las Vegas are definitely worth checking out, considering the significant growth of other industries in the region. Thanks to its business-friendly climate and the absence of corporate or personal income tax in the State of Nevada, more and more employers and companies are choosing to relocate to or open up their businesses precisely in Las Vegas.

What’s more, Las Vegas is not only about the busy and bustling lifestyle of the Strip. In that sense, Las Vegas real estate expands far more from the gambling and entertainment hotspot to other neighborhoods. Other lifestyle aspects, such as family, business, and more, are also available.

It is, therefore, easy to state that investing in Las Vegas real estate in 2022 can bode fairly well for investors. With various opportunities and properties to assess and the huge demand for housing in Las Vegas, it’s hard to make a wrong move in this case. It all depends on your investment preferences and real estate strategy whether you’ll be more inclined to check out mobile homes for sale in Las Vegas, the Strip properties, family suburbs, or anything else.

Conclusion

The real estate market is indeed competitive, especially when it comes to Las Vegas homes for sale. It is precisely why investors shouldn’t waste their time in 2022 if they are eyeing such a lucrative real estate market.

Of course, Mashvisor is always ready to assist beginners and experienced real estate investors in searching for the perfect property. For starters, you can always count on accurate and reliable data from Mashvisor. They can quickly provide you with the most important metrics when it comes to cap rates, cash on cash return, and other valuable information for both traditional and Airbnb rentals.

Once you’ve identified the best neighborhoods for your investment with Mashvisor’s Heatmap tool, you can proceed to use the Property Analysis tool. Additionally, the platform’s investment property calculator will help you obtain the best estimates available and save yourself a ton of time before making an informed and beneficial decision on the matter.

Give Mashvisor a try now. See how it can better transform your real estate investor career by signing up for a 7-day free trial today, followed by 15% off for life.