Housing Market Statistics September 2024:
The single-family residence (SFR) inventory has seen a notable rise, increasing by approximately 500 units, or around 10%, over the past 30 days.
Currently, about 5,900 SFRs are listed for sale, up from 5,400 just a month ago. Over the same period, roughly 1,900 SFRs were sold, a slight decline from the 2,086 sales in the preceding 30 days.
This shift brings the current inventory to 3.1 months of supply, up from 2.6 months during the previous period.
Las Vegas connects multiple major markets and is consdidered a vital hub in the Southwest
Housing Market Trends in Las Vegas 2025-2026
Las Vegas is Experiencing a Post-Pandemic Market Stabilization.
The pandemic distorted the Las Vegas market for a while (i.e., it shot up well above trend), and rents/home prices will eventually revert to the mean.
So What Just Happened with Las Vegas Real Estate?
In March 2020, the COVID-19 pandemic was in full swing.
Within two years, from 2021 to 2022, the Las Vegas market skyrocketed, with single-family residential housing units posting a median price of $482,000—a gain of more than 50 percent by May 2022.
In 2022, the national economy was white hot and characterized by supply chain challenges, low unemployment, and 40-year high inflation.
The Fed’s actions to tamp down the economy and get these dynamics in check have resulted in rising interest rates, including residential mortgage rates.
The doubling of mortgage pricing quickly put downward pressure on consumer buying power.
While the shift feels like the bottom is falling out, the reality is that today’s Las Vegas real estate market dynamics are much different than they were in the mid-2000s.
Today, the demand side of the equation remains stable, with more than 70,000 people choosing to move into Southern Nevada in the past year.
Assuming these trends hold, new residents should generate incremental demand for housing going forward.
Why did the Las Vegas market surge 50% during the pandemic?
iBuyers, Institutional Investors and Pandemic Migration...
The robust housing market trends in Las Vegas are partly due to iBuyers, institutional investors, low interest rates, government policy, and pandemic migration between 2020 and 2023. During the pandemic, a “perfect storm” of events inflated real estate values in sunbelt regions like Las Vegas.
The surprising outcome? Las Vegas real estate values are holding steady in 2024 and are expected to remain strong in 2025 and 2026!
The Post Pandemic Real Estate Market = elevated prices and increased rental rates.
Institutional Investors
Following the aftermath of the 2008 financial crisis, corporations and institutional investors sought to increase their acquisitions of residential real estate, including single-family rentals (SFRs).
However, concerns are emerging that history could repeat itself. According to a report from MetLife Investment Management in 2022, within a span of just seven years, up to 40% of single-family rental homes could be owned and controlled by Wall Street entities.
This situation could potentially present challenges not only for regular renters but also for the broader economy.
An excellent read on this topic was authored by Ryan Dezember, a book called Underwater. Single family home landlords are shifting from “mom and pop” operations to Wall St. titans – virgin territory among financial authors. In Las Vegas, a few hedge funds have setup shop.
They’re vacuuming-up all the investment houses and inflating prices. As a result, the traditional “buy-and-hold” SFR rental model is topsy-turvied. This model is replicated across the country, and has portentous omens for the future of residential real estate. (The “Great Recession – Part Deaux!”).
Since the early 2010s, Tricon Residential, Progress Residential, American Homes 4 Rent and Invitation Homes have each bought thousands of homes. They’ve also added to the housing supply in some cases with built-for-rent communities.
What about these entire purpose-built “build to rent” (BTR) neighborhoods across Las Vegas? Think apartment buildings but single-family home neighborhoods instead….every neighbor is a renter.
To further understand the recent housing market trends in Las Vegas, here’s a summary of supply and demand.
Pandemic Supply and Demand
- Shortage of new homes built during the recession of 2008-2012.
- Increase in household formations during the pandemic due to the need for more space, work-from-home trends, pandemic separations, divorces, etc.
- Mass migration to the sunbelt states like Las Vegas due to a once-in-a-lifetime pandemic.
- Institutional investors swooped into our market and purchased many entry-level single family homes.
- Individual investors entered our market from 2010-2024. Cash investors own many detached single-family homes, and Tenants occupy these rental houses.
- Governor mandated eviction moratorium through May 31st, 2021. Landlords could not serve eviction notices to get Tenants out, which limited the housing supply. This was extended multiple times but is no longer in effect.
- Governor limited property rights in 2020 and 2021 by forbidding landlords from serving 30-day “no cause” notices to vacate if a tenant was delinquent on rent. Landlords were having difficulty gaining control of their properties, which limited supply
- Pandemic Migration: Many houses were rented to people moving to Las Vegas from out of state for remote work or other reasons. Las Vegas saw an unprecedented increase in demand.
- Historically low interest rates in 2021 and 2022.
Rental Housing Market Trends in Las Vegas
25%-40% rent increases occurred between Fall 2020 and Spring 2022
Rental housing demand remains strong in Las Vegas, Summerlin and Henderson, NV.
Las Vegas in 1947.
The Future of Las Vegas...the city continues to grow.
Las Vegas is expected to grow its portfolio of pro sports teams to include MLB and NBA in the near future.
Investing in Residential Real Estate is what we do.
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Las Vegas Rental Market Statistics 2022-2023
[…] to learn more about Las Vegas housing investment trends in 2023? I have an updated blog post on that topic too. […]