Las Vegas real estate investors will be happy to hear that Realtor.com has named Las Vegas the number one real estate market to look forward to in 2018! After being one of the worst hit cities by the housing market crash, the Las Vegas real estate market is getting closer to long-term stability thanks to the significant improvement the city has witnessed.
So, whether you’re a beginner real estate investor looking to buy your first investment property, or an experienced real estate investor searching for your next investment property to grow your real estate investment portfolio, you should definitely consider investing in the Las Vegas real estate market.
In this guide, we’re going to point out what makes Las Vegas the hottest real estate market to invest in. Moreover, we’ll recommend 10 of the best neighborhoods in the Las Vegas real estate market in which real estate investors should consider buying an investment property, as calculated by Mashvisor’s investment property calculator.
Related: Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier
Why Is Las Vegas a Hot Real Estate Market?
Population Growth
Las Vegas’s population continues to grow year after year as more people are moving into the city. One thing that is drawing people to move to Las Vegas is the city’s striking home affordability and low interest rates! Home prices in the Las Vegas real estate market are lower than in any other major Western metro area in the US. Thanks to the lower cost of living, residents from different states move to Las Vegas (either renting or buying real estate investment properties).
For Las Vegas real estate investors with investment properties to rent, this is a positive indicator simply because more people equals high occupancy rate. Furthermore, the growing population results in an increase in real estate investment opportunities in the Las Vegas real estate market. With this flood of new residents, well priced investment properties are flying off the market!
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Job Growth
Job growth in Las Vegas is strong compared to other US real estate markets thanks to the many companies now moving their headquarters to Las Vegas to take advantage of no state rental income tax and low regulations. As a result, residents are now finding more job opportunities, which is great for the local economy.
This is another reason why real estate investors should have their eyes set on the Las Vegas real estate market! A growing economy means tenants have stable jobs, thus a stable income. This further means that Las Vegas real estate investors can find tenants who are able to pay their monthly rent, thus guaranteeing a positive cash flow from their rental property.
Related: What Can You Do to Always Have Strong Positive Cash Flow Income Property?
Tourism
The Las Vegas real estate market is one of the hottest markets for investing in short-term Airbnb rental properties. Why? Well, thanks to numerous attractions such as the Strip and Fremont Street Experience, there is no off-season when it comes to tourism. In fact, an average of 43 million people visits Las Vegas per year! As a result, investing in the Las Vegas real estate market is beneficial whether you’re investing in long-term rentals (traditional) or short-term rentals (Airbnb).
Click here to find the best Airbnb rental properties in the Las Vegas real estate market!
Now that we’ve covered why Las Vegas real estate is a hot investing market in 2018, let’s talk numbers! Here’s a quick summary of the Las Vegas real estate market as computed by Mashvisor’s investment property calculator, in addition to a list of the best neighborhoods in the city in which real estate investors should buy an investment property.
A Quick Summary of the Las Vegas Real Estate Market
- Median Property Price: $288,172
- Traditional Rental Income: $1,307
- Airbnb Rental Income: $1,461
- Traditional Cash on Cash Return: 2.16%
- Airbnb Cash on Cash Return: 3.21%
- Traditional Cap Rate: 2.16%
- Airbnb Cap Rate: 3.21%
The Best Neighborhoods in the Las Vegas Real Estate Market
Las Vegas Real Estate Market – The Strip
- Median Property Price: $258,888
- Traditional Rental Income: $1,938
- Airbnb Rental Income: $1,890
- Traditional Cash on Cash Return: 5.59%
- Airbnb Cash on Cash Return: 3.98%
- Traditional Cap Rate: 5.59%
- Airbnb Cap Rate: 3.98%
- Airbnb Occupancy Rate: 56.47%
Las Vegas Real Estate Market – Rancho Charleston
- Median Property Price: $239,900
- Traditional Rental Income: $1,376
- Airbnb Rental Income: $2,575
- Traditional Cash on Cash Return: 3%
- Airbnb Cash on Cash Return: 6.6%
- Traditional Cap Rate: 3%
- Airbnb Cap Rate: 6.6%
- Airbnb Occupancy Rate: 56.43%
Las Vegas Real Estate Market – Huntridge
- Median Property Price: $193,250
- Traditional Rental Income: $934
- Airbnb Rental Income: $2,151
- Traditional Cash on Cash Return: 1.67%
- Airbnb Cash on Cash Return: 7.38%
- Traditional Cap Rate: 1.67%
- Airbnb Cap Rate: 7.38%
- Airbnb Occupancy Rate: 44.10%
Las Vegas Real Estate Market – Winchester
- Median Property Price: $225,000
- Traditional Rental Income: $1,112
- Airbnb Rental Income: $2,334
- Traditional Cash on Cash Return: 2.55%
- Airbnb Cash on Cash Return: 7.55%
- Traditional Cap Rate: 2.55%
- Airbnb Cap Rate: 7.55%
- Airbnb Occupancy Rate: 52.82%
Las Vegas Real Estate Market – Michael Way
- Median Property Price: $199,999
- Traditional Rental Income: $934
- Airbnb Rental Income: $2,151
- Traditional Cash on Cash Return: 2.12%
- Airbnb Cash on Cash Return: 7.65%
- Traditional Cap Rate: 2.12%
- Airbnb Cap Rate: 7.65%
- Airbnb Occupancy Rate: 59.32%
Las Vegas Real Estate Market – The Lakes
- Median Property Price: $350,000
- Traditional Rental Income: $1,520
- Airbnb Rental Income: $2,255
- Traditional Cash on Cash Return: 2.03%
- Airbnb Cash on Cash Return: 3.84%
- Traditional Cap Rate: 2.03%
- Airbnb Cap Rate: 3.84%
- Airbnb Occupancy Rate: 42.95%
Las Vegas Real Estate Market – Buffalo
- Median Property Price: $250,000
- Traditional Rental Income: $1,293
- Airbnb Rental Income: $2,781
- Traditional Cash on Cash Return: 2.22%
- Airbnb Cash on Cash Return: 5.7%
- Traditional Cap Rate: 2.22%
- Airbnb Cap Rate: 5.7%
- Airbnb Occupancy Rate: 43.13%
Las Vegas Real Estate Market – North Cheyenne
- Median Property Price: $255,000
- Traditional Rental Income: $1,155
- Airbnb Rental Income: $1,699
- Traditional Cash on Cash Return: 2.02%
- Airbnb Cash on Cash Return: 4.02%
- Traditional Cap Rate: 2.02%
- Airbnb Cap Rate: 4.02%
- Airbnb Occupancy Rate: 34.50%
Las Vegas Real Estate Market – Paradise
- Median Property Price: $275,000
- Traditional Rental Income: $1,163
- Airbnb Rental Income: $2,169
- Traditional Cash on Cash Return: 1.79%
- Airbnb Cash on Cash Return: 4.87%
- Traditional Cap Rate: 1.79%
- Airbnb Cap Rate: 4.87%
- Airbnb Occupancy Rate: 46.15%
Las Vegas Real Estate Market – Lone Mountain
- Median Property Price: $295,000
- Traditional Rental Income: $1,193
- Airbnb Rental Income: $2,600
- Traditional Cash on Cash Return: 1.47%
- Airbnb Cash on Cash Return: 5.2%
- Traditional Cap Rate: 1.47%
- Airbnb Cap Rate: 5.2%
- Airbnb Occupancy Rate: 50.54%
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Las Vegas Real Estate Market – Conclusion
The above-mentioned neighborhoods are those in which real estate investors will find investment properties in Las Vegas that are worth their money and generate a high return on investment, as calculated by Mashvisor’s investment property calculator. Thus, whether you’re a beginner or an experienced real estate investor, the Las Vegas real estate market should definitely be on your list of places in which to buy investment property.
Related: Top 10 Real Estate Markets for Buying Rental Property in 2018
Mashvisor provides real estate investors with real estate investment data analysis including analysis of traditional and Airbnb pricing, occupancy rates, cash on cash return, cap rates, and more. Thus, sign up to use Mashvisor’s investment property calculator to find and analyze thousands of real estate investment properties on the market in any state, city, and neighborhood across the country within minutes!
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