What in the world in going on with Las Vegas housing? Why are local housing prices up 20% in less than 4 months? To better understand current investment housing trends in Las Vegas you need to understand the simple economics of housing supply being kept artificially low by government policies and the pandemic:
- investors swarmed our market from 2010-2017. Almost half of detached single family homes are owned by cash investors and these rentals houses are occupied by Tenants.
- There is a Governor mandated eviction moratorium through May 31st, 2021. Landlords cannot serve evictions notices to get Tenants out which is limiting our housing supply. This has been extended multiple times and there are concerns it may be extended again
- The governor has also limited landlords from serving 30 day “no cause” notices to vacate if a tenant is delinquent on rent. Landlords are having a hard time gaining control of their properties which is limiting supply
- Some homeowner’s are terrified of COVID and would have wanted to sell but don’t want strangers entering their house (limiting supply)
- As a real estate broker and property manager many houses are being sold and rented to people moving here from out of state for remote work or other reasons. We have a tremendous increase in demand
- Shannon Chambers, president of Home Means Nevada, a state-affiliated nonprofit organization that assists homeowners, estimated that more than 8 percent of mortgage loans in the state are in forbearance, which she said is upwards of 100,000 loans.
- CA residents are coming to Nevada for the low cost living, no state income tax and other reasons…this is pushing up demand.
For additional reading, here is an article by the Senior Industry Fellow at Joint Center for Housing Studies of Harvard University titled: “THE EXTRAORDINARY AND UNEXPECTED PANDEMIC INCREASE IN HOUSE PRICES: CAUSES AND IMPLICATIONS”
It’s a fascinating read for anyone trying to understand why the Las Vegas residential real estate market is seeing 20-30% appreciation during the first 4 months of 2021.