Is the Las Vegas real estate market 2018 a good choice for investing in property?
To answer this question, we need to take everything into consideration a number of factors, including the general overview of the city and its real estate performance stats as well as its laws and regulations.
Las Vegas Overview
Las Vegas is one of the most famous cities in the entire world due to its prominence in Hollywood movies and other mediums of modern culture and society. Also known as Sin City, Las Vegas is the big casino land of the US in addition to home to some of the most luxurious hotels and resorts in the US and perhaps around the globe.
The Gambling Capital of the World is packed with attractions and activities that appeal to many, and is one of the most picked destinations for celebrating events, especially bachelors’ parties, making it an excellent choice forreal estate investment related to providing luxury hospitality and accommodation to short-term travelers and tourists.
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This is perhaps the main reason why Las Vegas has become home to some of the biggest and most prominent hotels and resorts in the US in order to cater to the millions of travelers and tourists who come to the city all year round.
However, this isn’t all that Las Vegas is known for. In fact, Las Vegas has been named the hottest real estate market to look out for in 2018. So, if you’re a real estate investor looking for a new opportunity, then you should keep an eye on Sin City and search for your next big investment there.
Related: The 4 Hottest Cities for Investing in California in 2018
Las Vegas Real Estate Market 2018 Stats
Now that you have a general overview of the city, it’s time to jump into the Las Vegas real estate market 2018 stats to get a better understanding of how the Entertainment Capital of the World performs in terms of real estate investing.
Here are Mashvisor’s rental property calculator stats for the Las Vegas real estate market 2018:
- Median Property Price: $288,172
- Median Traditional Rental Income: $1,307
- Median Airbnb Rental Income: $1,461
- Average Traditional Cap Rate: 2%
- Average Airbnb Cap Rate: 2.9%
- Average Airbnb Occupancy Rate: 64%
Here are some additional stats that will impact the Las Vegas real estate market 2018 performance:
- Crime Rate: 11% (safer than 11% of US cities)
- Walk Score: 41 (highest is 84 in the Arts District)
- Transit Score: 34 (highest is 70 in the Arts District)
- Bike Score: 52 (highest is 77 in the Arts District)
- Cost of Living Index: 50 (4.5% higher than the US average)
- Buyer’s Market vs. Seller’s Market: The Las Vegas real estate market is definitely a seller’s market.
Las Vegas Real Estate Market 2018: Short-Term Rentals Laws
Naturally, whenever you’re analyzing a real estate market, it is important to take into consideration the laws and regulations affecting short-term rentals.
Generally speaking, short-term and Airbnb rental properties in Las Vegas are legal. However, due to recent law changes, short-term rental operators and Airbnb hosts are required to have a special permit for operating vacation homes.
This law was put in place last year to try to curb party houses due to numerous complaints in the residential neighborhoods of the city.
Currently, the special-use permit which is issued for operating short-term rentals is tied to the property. This means that if you’re a real estate investor who owns a short-term rental property in Las Vegas, and you decide to sell the property to another real estate investor, the new owner will be able to run the property as a short-term rental without having to issue a new permit for it.
Although this new law has effects on Airbnb hosts and real estate investors looking to operate short-term rentals in Las Vegas, its effects are generally minor, and investing in Airbnb properties remains as a good and profitable investment opportunity in Sin City.
Related: Your Real Estate Investment Guide to Airbnb Rental Properties: Where Is Airbnb Legal?
Las Vegas Real Estate Market 2018: Optimal Rental Strategy
Generally speaking, both short-term and long-term rental properties in Las Vegas perform pretty well and are considered profitable investments.
Airbnb rentals, however, have a slight advantage over long-term or traditional rentals. The reason behind this is the fact that most visitors who come to Las Vegas are typically short-term travelers or tourists and are not going to spend years living in Sin City.
This does not mean that long-term and traditional rentals are not a good option, but they are less optimal than short-term rentals.
Also, when investing in the Las Vegas real estate market 2018, you should always take into account that short-term rentals will not only be competing with other short-term rentals in the market, but also with many of the biggest and most luxurious hotels in the world.
For this reason, when renting out an Airbnb property in Las Vegas, you will have to set competing rental rates that will attract tenants to your property, while also providing them with the luxuries and hospitalities that they can expect from renting a room in a hotel or a resort.
Related: When is a Long-Term Rental Better than a Short Term Rental?
Las Vegas Real Estate Market 2018 Forecast
While the Las Vegas real estate market 2018 was named “the hottest real estate market of 2018” at the start of the year, shortly after, in February, the market seemed to have a slow-down in sales volume. Real estate experts attributed this slowing down of sales to not enough people listing their properties for sale.
Generally, the Las Vegas housing market is facing a shortage of supply and thus cannot keep up with the increasing demand. Since Las Vegas has been named the hottest housing market, real estate investors and homebuyers started rushing to buy properties in Sin City, pushing demand up, while homeowners became more reluctant to sell their properties in the hopes that the market will grow further and the value of properties will grow along with it, giving them the opportunity to hold on to their properties and wait for the value to increase even more.
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Las Vegas Real Estate Market 2018: Conclusion
When considering investing in the Las Vegas real estate market 2018, real estate investors should not hesitate to invest in rental properties, both short-term and long-term rentals, as both investment strategies seem to have a high potential for profits.
Additionally, although the prices are rising slowly, the median price of homes in Las Vegas ($288,172) is still considered very affordable for most real estate investors and homebuyers.
Lastly, if you’re looking to find the most lucrative and profitable short-term and vacation rentals in Las Vegas, use Mashvisor to obtain analytics related to each investment property to determine its profitability and projected returns to make sure invest in the most suitable real estate properties based on your investment strategy and criteria.