The Las Vegas real estate market 2018 was a hot one. So much so that it surpassed top US housing markets like Seattle. But what is the Las Vegas housing market 2019 forecast to look like? Is a Las Vegas investment property still a good real estate investment? We turn to the Las Vegas housing market forecast for answers on why and where to invest in this robust market in 2019.
Las Vegas Housing Market Predictions 2019
You might have guessed that the Las Vegas real estate market won’t be slowing down anytime soon. All trends are positive and there’s never been a better time to invest in Las Vegas real estate. Let’s take a close look at the Las Vegas housing market predictions 2019 to find out why.
2019 Population Trends
If you are toying with the idea of buying a Las Vegas rental property for sale, then the population trends will push you to make this decision. It is a good time to buy a house in Las Vegas to rent out as the population is projected to grow at a high rate. In fact, according to the PwC’s annual real estate report, the Las Vegas housing market 2019 will enjoy a population growth rate that is well above the national growth rate.
This is actually a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016. This earned the Las Vegas real estate market a spot among the best places that people were moving to in 2018. It’s clear the city will hold this title well into 2019 according to the forecast.
What do experts attribute this population growth to? It’s thanks to the high quality of life that is offered in the Las Vegas real estate market. While outsiders might see this market only as “Sin City,” people flock to buy and rent out Las Vegas homes for sale as the area offers so much more than its casinos and nightlife. There are quiet suburban communities with family-friendly parks and restaurants and plenty of culture, art, and nature to enjoy.
So what does this mean for a future Las Vegas real estate investor? With healthy population growth thanks to more people moving into the city rather than leaving, demand for rental property is typically high. While population growth isn’t always a stand-alone indication, other factors in our Las Vegas housing market forecast 2019 back this up.
For instance, Mashvisor data shows that the price to rent ratio is 23. Typically, anything above 15 means that plenty of people are renting rather than buying homes. And with Neighborhood Scout reporting that almost half of Las Vegas residents are in fact renters, the numbers prove favorable for owning a rental property. So, buying a rental property should prove to be profitable in the right neighborhoods in Las Vegas.
You can start looking for the best neighborhoods in the Las Vegas housing market 2019 right here.
Las Vegas Economic Trends
The strong population growth is not only a positive for the Las Vegas housing market 2019, but it’s actually a necessity. That’s because the growing economy of the city requires it. Economic forecasts are showing that the employment growth is expected to be double that of the US this year.
The Las Vegas real estate market is actually chock-full of new businesses. It’s this high entrepreneurial activity that’s propping up the economy and aiding in all of the positive Las Vegas real estate market trends for 2019. In fact, new businesses are actually being created at a much faster rate than the national average.
Las Vegas rental properties near these new businesses will benefit greatly thanks to the tenant pool and the general improvement in economic activity that they bring. And even if you don’t get to buy an investment property in a neighborhood flush with new businesses, this entrepreneurial activity is generally good for the economy as a whole and therefore, for Las Vegas investment properties in general.
Other areas that dominate the economy are tourism, healthcare, technology, and food services. All of which are booming industries that any investment property would prosper from.
Las Vegas Real Estate Market Trends 2019
Are Las Vegas Homes for Sale Affordable?
Buying an investment property is becoming more and more expensive in the US seller’s market thanks to the fact that investment property mortgage rates and housing prices are on the rise. But that’s why the Las Vegas housing market 2019 is a great place for a real estate investment. It remains relatively affordable as you can see from the housing market data below provided by Mashvisor’s investment calculator:
- Median Property Price: $372,236
- Price per Square Foot: $182
While you might still feel like the median property price is too high for your 2019 budget for real estate investing, there are plenty of profitable rental properties that are much cheaper than the median. Take a look at a few traditional Las Vegas investment properties provided by Mashvisor’s Property Finder Tool:
Learn more about this unique real estate tool: How to Find Investment Properties Using a Property Finder Tool
As you can see, cheap investment property for sale with a good return on investment can still be found in the Las Vegas housing market 2019, even though it’s considered a hot market.
Try out Mashvisor’s Property Finder Tool for FREE now.
Will a Las Vegas Real Estate Investment Appreciate?
Even though you can find Las Vegas investment properties at an affordable price right now, the market forecast shows value and prices are on the rise. This is natural as the Las Vegas housing market predictions 2019 show continued growth. The market is likely to keep this up well into 2020 and beyond.
Looking at the Las Vegas housing market forecast 2019 from Zillow, property value is set to appreciate 7.1% after already rising about 15% in 2018. And, according to Realtor.com, Las Vegas real estate prices will be some of the fastest growing this year, second only to Grand Rapids, MI.
Despite the rise in house prices, sales are also forecast to increase. All of this seems to spell a seller’s market. With the days on market at 73 according to Mashvisor, this Las Vegas housing market prediction seems likely.
The takeaway? Now is the best time to buy a house in Las Vegas to rent out. If you wait any longer to make an investment here, prices will rise as will competition. It’s best to buy an investment property now and enjoy the returns and real estate appreciation.
What Kind of Return on Investment Does a Las Vegas Rental Property Promise?
Let’s take a look at Mashvisor’s real estate data to see what kind of return on investment the average traditional Las Vegas rental property can bring its owner:
- Traditional Rental Income: $1,333
- Traditional Cash on Cash Return: 1.4%
For city averages, both the monthly rental income and cash on cash return are good. Just remember that, as our Property Finder Tool shows, you can find investment properties with much higher returns in the Las Vegas housing market 2019.
What Type of Las Vegas Investment Property Should You Invest In This Year?
Single-family rentals or multi-family rentals? Which should you invest in? While you might already have your preference, let’s briefly look at each type of Las Vegas investment property.
Single-Family Homes
There are actually more single family homes for sale in the Las Vegas real estate market. If you choose this type of real estate investment, you might have more options. Let’s take a look at Mashvisor’s data for Las Vegas single-family rentals to see how they fare in price and profitability:
- Median Property Price: $415,795
- Traditional Rental Income: $1,391
- Traditional Cash on Cash Return: 1.2%
Again, the averages for the city are pretty good. But to get a better idea, here are a few top-performing single-family homes for sale from our Property Finder Tool:
It’s clear you can get a good return on investment with Las Vegas single-family homes.
Multi-Family Homes
Small multi-family homes are much less prevalent in Las Vegas so you might have fewer options when you go property hunting. However, according to the PwC, it’s a good time to buy a multi-family home in Las Vegas.
The report also names the Las Vegas real estate market as one of the top cities for multi-family homes in its region. Here is Mashvisor’s data on small multi-family rentals:
- Median Property Price: $419,264
- Traditional Rental Income: $1,458
- Traditional Cash on Cash Return: 1.07%
Here are a few multi-family properties from the Property Finder Tool:
While the returns on these multi-family homes for sale are good, it seems Las Vegas single-family homes might bring a higher cash on cash return.
It might come down to your preference, but it would seem that, overall, a single-family rental is the way to go.
Related: Single-Family vs. Multi-Family Rentals: Which Is the Right Real Estate Investment for You?
The 5 Best Neighborhoods in the Las Vegas Housing Market 2019
If you’re ready to invest in Las Vegas real estate, then you need to know where. Here are the best neighborhoods in Las Vegas for buying an investment property.
The Strip
- Median Property Price: $323,507
- Traditional Rental Income: $1,564
- Traditional Cash on Cash Return: 6%
Winchester
- Median Property Price: $286,793
- Traditional Rental Income: $1,129
- Traditional Cash on Cash Return: 2%
Rancho Charleston
- Median Property Price: $382,145
- Traditional Rental Income: $1,261
- Traditional Cash on Cash Return: 2%
Twin Lakes
- Median Property Price: $213,555
- Traditional Rental Income: $981
- Traditional Cash on Cash Return: 1.5%
Michael Way
- Median Property Price: $219,350
- Traditional Rental Income: $970
- Traditional Cash on Cash Return: 1%
Click here to start looking for a top-performing investment property in any of these Las Vegas neighborhoods.
How to Find the Best Property in the Las Vegas Housing Market 2019
Want to find the best Las Vegas investment property for sale in one of these top neighborhoods? Then start your search now with a 14-day free trial with Mashvisor. With our tools, you get an in-depth analysis of each and every neighborhood and investment property!
