Among other nicknames, Las Vegas is known as the Gambling Capital of the World. By investing in the Las Vegas housing market 2020, however, you won’t be gambling. You’ll be in for a low risk, high yield investment. We’ll explore why this is the case for the Las Vegas real estate market 2020. And we’ll show you where the best places to invest in Las Vegas are to ensure you end up with the best investment property.
Related: 5 Best Rental Investment Markets for 2020
Las Vegas Real Estate Market 2020: Mashvisor’s Data
Why are we starting off by giving you an inside look at Las Vegas housing market data? Such data paints the picture of how profitable Las Vegas real estate investing is. Therefore, real estate data is a must for any market forecast. Where can you obtain data on the Las Vegas real estate market? Right here, at Mashvisor! Mashvisor is the ultimate tool for studying investment locations. Take a look at Mashvisor’s data for the Las Vegas real estate market.
- Median Property Price: $383,880
- Price per Square Foot: $202
- Price-to-Rent Ratio: 23
- Traditional Rental Income: $1,384
- Traditional Cap Rate / Cash on Cash Return: 1.7%
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Las Vegas Housing Market 2020 Forecast
What will investing in Las Vegas real estate be like in 2020? The forecast is very positive, to say the least. There are 4 Las Vegas real estate market trends investors should know.
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Las Vegas House Prices Will Begin to Stabilize
Historically, Las Vegas real estate has enjoyed high appreciation. According to NeighborhoodScout, in the last 10 years, Las Vegas real estate appreciated by over 99%. This placed the market in the top 10% nationally. And 2019 was quite a year for Las Vegas house prices. While they did not have the highest increase in the nation, they were certainly growing the fastest.
So, what will Las Vegas house prices be like in 2020? Fortunately, they are expected to begin to slow down. A high appreciation rate is still projected, however. According to Zillow, Las Vegas real estate values will increase by 2.6%. With such a growth rate, the Las Vegas real estate market will remain profitable but this kind of slowdown makes it easier for buyers to enter the market. This also means that Las Vegas will be a cool buyer’s market this year.
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Housing Inventory Will Increase
There is another reason why Las Vegas will be a buyer’s market rather than a seller’s market this year. That, of course, is the increased housing supply in the Las Vegas real estate market. The city’s inventory has increased in recent years and is projected to continue growing in the coming years. As a result, Las Vegas was ranked as the 19th best city for homebuilding prospects in 2020 by the PwC. According to the report, construction employment is up 14% year-over-year. This, coupled with high development opportunities, will ensure a growing inventory for years to come.
Related: US Housing Inventory Could See a Boost
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Condos Will Be the Most Profitable Las Vegas Rental Properties
Long-term rental properties are in high demand in Las Vegas. This is most evident in that 48% of the city’s residents live in traditional rental properties. The most profitable Las Vegas rental properties in 2020 will be condos followed by townhouses. Condos and townhouses are also more affordable than the median property price in the Las Vegas housing market as they are smaller than single-family homes and multifamily homes.
Condos
- Median Property Price: $347,776
- Price per Square Foot: $268
- Traditional Rental Income: $1,244
- Traditional Cap Rate / Cash on Cash Return: 2.3%
Townhouses
- Median Property Price: $225,143
- Price per Square Foot: $162
- Traditional Rental Income: $1,108
- Traditional Cap Rate / Cash on Cash Return: 2.0%
Single-Family Homes
- Median Property Price: $412,526
- Price per Square Foot: $186
- Traditional Rental Income: $1,426
- Traditional Cap Rate / Cash on Cash Return: 1.4%
Multifamily Properties
- Median Property Price: $407,664
- Price per Square Foot: $180
- Traditional Rental Income: $1,545
- Traditional Cap Rate / Cash on Cash Return: 1.2%
Regardless of all of this, you can’t go wrong with any property type in the Las Vegas real estate market. Mashvisor’s data shows that each type can bring a good return on investment.
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Non-Owner Occupied Properties Will Be Illegal for Airbnb Las Vegas
You may have noticed that, up until this point, we have not mentioned Airbnb Las Vegas. There’s no shortage of tourism in the city, we all know that. However, there is a lack of lenient Airbnb regulations. There are many Las Vegas Airbnb laws that prove this point. Most importantly, only primary residences are allowed for Airbnb Las Vegas. There are also zoning issues for renting out on Airbnb. Airbnb hosts also require a yearly business license, with a $500 fee, and a short-term rental permit, renewed every 6 months. Finally, an Airbnb Las Vegas property owner must pay a 13% lodging tax.
Due to these restrictive regulations, buying a rental property for Airbnb isn’t generally recommended as a strategy in the Las Vegas real estate market. Las Vegas housing market predictions 2020 don’t foresee a change in this regard. However, when deemed appropriate, we suggest house hacking for Airbnb.
Related: The Ultimate Guide to House Hacking
The Best Places to Invest in the Las Vegas Real Estate Market in 2020
We can now move on to the final part of this blog. Where should you invest in Las Vegas real estate? There are many up and coming neighborhoods in the city. However, we recommend the following four places for buying a Las Vegas real estate investment:
Meadows Village
- Median Property Price: $604,333
- Price per Square Foot: $312
- Price-to-Rent Ratio: 21
- Traditional Rental Income: $2,360
- Traditional Cap Rate / Cash on Cash Return: 3.1%
Cultural Corridor
- Median Property Price: $220,672
- Price per Square Foot: $167
- Price-to-Rent Ratio: 16
- Traditional Rental Income: $1,162
- Traditional Cap Rate / Cash on Cash Return: 2.3%
Downtown
- Median Property Price: $458,692
- Price per Square Foot: $314
- Price-to-Rent Ratio: 18
- Traditional Rental Income: $2,171
- Traditional Cap Rate / Cash on Cash Return: 2.3%
Sunrise
- Median Property Price: $205,112
- Price per Square Foot: $155
- Price-to-Rent Ratio: 16
- Traditional Rental Income: $1,064
- Traditional Cap Rate / Cash on Cash Return: 2.0%
Find a Las Vegas Investment Property Now
Income property in Las Vegas will be a profitable investment for 2020. To start searching for Las Vegas houses for sale, CLICK HERE to start your 14-day FREE trial with Mashvisor!
