2017 was the 3rd best year for Las Vegas real estate, and experts predict 2018 will be even better. In fact, Realtor.com named Las Vegas the number one real estate market to look forward to in the country for 2018!
Reports indicate that the Las Vegas real estate market is now near long-term stability (after being one of the worst hit cities by the housing market crash) thanks to the significant improvements that the region has seen. Furthermore, current trends show no significant fluctuations in the area, suggesting that true normalcy is on the horizon.
So, whether you’re a new real estate investor searching for your first investment property, or an experienced real estate investor looking for your next investment property to grow your real estate investment portfolio, you should definitely consider looking into the Las Vegas real estate market.
Here are the features that make Las Vegas real estate one of the hottest markets in the United States:
Las Vegas Real Estate – Population Growth
The economy of the city is expected to grow about 8.7% in 2018, which is better than the rest of the top 100 markets which, according to Realtor.com, are expecting an economic growth of 6.4%. What this means is that a lot of people are moving to the Las Vegas real estate market and looking for places to live. This is a positive indicator as property investors can ensure finding tenants to rent out their investment properties to, which will lead to a high occupancy rate.
One of the things that are drawing people to move to and settle down in Las Vegas is the city’s still striking home affordability and the low interest rates! Las Vegas real estate home prices are lower than nearly every other major Western metro area in the country. Many people from different states sell their houses and move to Las Vegas (either renting or buying investment properties) for a lower cost of living. With this flood of new residents, well priced investment properties in good neighborhoods are flying off the market!
The growing population naturally results in increasing real estate investment opportunities in the Las Vegas real estate market: more people = more tenants! This demographic trend is expected to continue into 2018, which is a good sign for a real estate investor thinking of investing in Las Vegas real estate and keeps it one of the hottest markets.
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Las Vegas Real Estate – Job Growth
Another aspect of the Las Vegas real estate market that makes it one of the hottest markets that attract property investors is the city’s economy. One factor that has a positive effect on the local economy is job growth. Job growth in Las Vegas is strong compared to other real estate markets, with one-year job growth rate rising to 2.7%, better than the national average of 1.9%.
A reason for this job growth is that many companies are now moving their headquarters to Las Vegas to take advantage of the no state income tax and low regulations. As a result, people now are back to work, finding more job opportunities and spending money, which is great for the economy.
This is another reason why property investors should have their eyes set on the Las Vegas real estate market – markets with an economy and job growth are the hottest markets for real estate investing because tenants renting in these markets have stable jobs and thus a stable income. This further means that in these markets, property investors can find tenants who are able to pay their monthly rent, thus guaranteeing a positive cash flow from their rental property.
Las Vegas Real Estate – Tourism
What is remarkable about Las Vegas is that there is no off-season when it comes to tourism. In fact, an average of 43 million people visit Las Vegas every year! International tourists are always visiting the city for vacation, and not to mention domestic tourism as Americans from different nearby states drive to Las Vegas to enjoy a short weekend visit or to celebrate events like the Super Bowl, March Madness, and New Year.
With numerous attractions such as the Strip, Fremont Street Experience, and the helicopter rides over Las Vegas and the Grand Canyon, these and more make Las Vegas one of the hottest tourists’ destination in the country, which further contributes to the growing economy. This makes the Las Vegas real estate market one of the hottest markets for property investors who are investing in Airbnb rental properties.
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Las Vegas Real Estate – Airbnb Rental Properties
As mentioned above, Las Vegas is receiving tourists all year round thanks to its flourishing tourism industry. Obviously, visitors are always looking for investment properties to rent.
Data shows that most people would rather stay in Las Vegas real estate Airbnb rental properties as opposed to hotel rooms as the majority have found Airbnb rental properties to be much cheaper. Moreover, one in five of the 43 million tourists are internationals who prefer Airbnb rental properties not only for being cheaper but also because they view them as opportunities to mingle with the locals and experience the culture.
Property investors go about investing in the Las Vegas real estate market through Airbnb rental properties differently. One real estate investor might buy an investment property for the sole purpose of renting it out as an Airbnb rental. Another real estate investor might decide to rent out a room in his/her residential property. This is one of the best investing strategies as it gives investors the flexibility to decide which days to rent out, who the renters will be, and how much rent to charge.
Regardless of which strategy a Las Vegas real estate investor opts for, he/she will still make a profit from Airbnb rental properties thanks to the city’s tourism industry. In fact, Las Vegas real estate is one of the top Airbnb markets, along with major cities like San Francisco and Los Angeles.
Las Vegas Real Estate – Market Statics
Now that we’ve covered what makes Las Vegas real estate one of the hottest markets in 2018, let’s talk numbers! According to FortuneBuilders.com, below are the forecast market trends that should encourage property investors to buy an investment property in Las Vegas:
- Median Home Price: $235,000
- Median Monthly Rent: $1,395
- Rental Yield: 5.5%
- Increase in Home Values: 10.1%
- Job Growth Rate: 3.7%
In addition, Zillow recently forecast that the median home value in Las Vegas would rise by around 5.8% over the course of the next 12 months. The slowly raising home values along with the low inventory makes the Las Vegas real estate market a hot seller’s market. Real estate buyers are out there searching for a property; thus, if you own an investment property and are thinking of listing it, now would be the best time!
Las Vegas Real Estate – Final Words
All of the 2018 real estate market forecasts for Las Vegas real estate seem to agree that it’s one of the hottest markets in the country. The above mentioned factors and numbers prove this and make it clear why a real estate investor (whether beginner or experienced) has to take the Las Vegas real estate market into consideration when searching for an investment property.
Mashvisor’s blog section provides property investors with numerous city guides, step-by-step guides, and tips for succeeding in the real estate investing business. Moreover, Mashvisor’s investment property calculator allows property investors to search for and analyze investment properties across the country to find the best ones in a matter of minutes!
Click here to start searching for and analyzing the best investment properties in Las Vegas, and make sure to sign up for Mashvisor to have our real estate investing tool at your disposal at all times.