Learn about investing in the Las Vegas real estate market 2018 based on an overview of the city, its real estate market performance, its Airbnb laws, and a brief forecast to where the market is headed.
Las Vegas Real Estate Market 2018
Overview and Forecast
Las Vegas City Overview
Is Las Vegas real estate market 2018 a good choice for investing in property?
To answer this question, we need to take into consideration the general overview of the city and its real estate performance stats, as well as its laws and regulations.
Las Vegas is one of the most famous cities in the 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 biggest casino land of the US in addition to a home to some of the most luxurious hotels and resorts in the US and perhaps even 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 for real estate investment related to providing luxury hospitality and accommodations to short-term travelers and tourists.
Las Vegas City Overview
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.
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%
Las Vegas: Additional Stats
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.
Top Neighborhoods for Investing in Las Vegas – The Strip
The Strip is the #1 neighborhood for investing in traditional rental properties in Las Vegas. Here are Mashvisor’s neighborhood stats for The Strip:
- Median Property Price: $258,888
- Median Traditional Rental Income: $1,938
- Median Airbnb Rental Income: $1,890
- Average Traditional Cap Rate: 3.98%
- Average Airbnb Cap Rate: 5.59%
- Average Airbnb Occupancy Rate: 56.47%
Top Neighborhoods for Investing in Las Vegas – Winchester
Winchester has the highest projected returns for Airbnb rentals, and the second highest for traditional rentals, making it the most balanced choice for investing in rental properties in Las Vegas. Here are Mashvisor’s neighborhood stats for Winchester:
- Median Property Price: $225,000
- Median Traditional Rental Income: $1,112
- Median Airbnb Rental Income: $2,334
- Average Traditional Cap Rate: 2.55%
- Average Airbnb Cap Rate: 7.55%
- Average Airbnb Occupancy Rate: 52.82%
Top Neighborhoods for Investing in Las Vegas – Huntridge
Huntridge is the most affordable neighborhood for purchasing a rental property in Las Vegas. Although traditional rentals do not have the highest projected returns in Huntridge, Airbnb rentals can have very high returns. Here are Mashvisor’s neighborhood stats for Huntridge:
- Median Property Price: $193,250
- Median Traditional Rental Income: $934
- Median Airbnb Rental Income: $2,151
- Average Traditional Cap Rate: 1.67%
- Average Airbnb Cap Rate: 7.38%
- Average Airbnb Occupancy Rate: 44.10%
Las Vegas Real Estate Market: Airbnb Laws and Regulations
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 or Airbnb rental properties in Las Vegas are legal. However, due to recent law changes, short-term rental operators, aka 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 impacts Airbnb hosts and real estate investors looking to operate short-term rentals in Las Vegas, its effects are relatively minor, and investing in Airbnb properties remains a good and profitable investment in Sin City.
Investing in the Las Vegas Real Estate Market 2018: Optimal Rental Strategy
Generally speaking, both short-term and long-term rental properties perform pretty well and are considered profitable investments in Las Vegas.
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 or traditional rentals are not a good investment option, but they are less optimal than short-term rentals.
Also, when investing in the Las Vegas real estate market 2018, you should take into account your 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 which 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.
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 the volume of sales. 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.
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, whether short-term or long-term rentals, as both investment strategies seem to have a high potential for profits.
Additionally, although property 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.
Who is using Mashvisor?
First Time Real Estate Investors
New real estate investors usually don’t know where to begin their research. Mashvisor helps an investor quickly understand and analyze any city or neighborhood’s average investment performance. Investors are able to save time selecting the optimal area for investing and can save months worth of research deciding on this alone.
Experienced Real Estate Investors
Investors that are looking for their next property are used to analyzing their returns and having built many spreadsheets in the past. Mashvisor automatically calculates the returns of a property for the investor so that they never have to use a spreadsheet again.
Real Estate Brokers/Agents
Real estate brokers and agents now have another place to advertise their properties. They can place their listings in front of investors and Mashvisor’s data helps the property better appeal to clients.
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