Las Vegas. It is known as Sin City and the place that whatever happens here stays here.
Well, the pandemic certainly put that to the test, and before that, there were 231,915 households in Las Vegas as of 2019.
But, what does that mean for the Las Vegas real estate market in 2021? Here are five of the latest Las Vegas real estate trends.
1. Rent is Rising
As of August 2021, the average rent in Las Vegas is $1,622 per month. In 2019, the average rent was $1,102, so the average price has effectively gone up almost 50% in just two years.
This is not a national trend, considering places like San Francisco and New York City have seen a significant decline in rent. But, with working at home becoming more and more realistic, cheaper cities like Las Vegas may benefit from the rental market.
2. Home Value is Still Up
Everyone knows that 2020 saw a big rise in home value across the country, and Las Vegas is certainly no exception. How is that holding up in 2021?
Well, pretty good. Compared to this time last year, home value is up by 21.5%. From the previous month, it rose by 3.4%.
Admittedly, there have been questions about how long this can keep going up, considering Las Vegas does not have the highest median income, but for now, home value is still seeing good returns.
You can check out these homes from local real estate agents to see for yourself.
3. Inventory Is Lower in 2021
There are two ways that you can look at the real estate inventory statistics. If you compare it to a previous month, it looks good as it is up by about 5% from that.
However, compared to 2020, it is down by nearly 1/3 compared to the same time last year. This year is seeing fewer houses available on the market because many more people had houses ready to be sold in 2020.
You have to remember, many businesses shut down in 2020, and the construction of new houses was no exception. So, earlier in 2021, you saw the repercussions of this, but it looks like the market is slowly recovering from that.
4. More Price Cuts
There is a question of what the peak of the housing market is going to be? Well, more people seem to be finding out in their listing prices.
In June of 2021, about 8.2% of houses had to have a price cut to their listing price. In July, that percentage increased to 10.7%.
So, one can question if the increase in price cuts means that the market is getting closer to the peak of what it can charge prospective buyers.
5. Lower Population Increase
In 2021, the metro area of Las Vegas saw a 2.7% increase in population compared to 2020. This is not too out of the ordinary, considering there has been a steady decline in population increase for several decades now.
So, the interesting question here might be what happens with this in 2022 if the rent and housing prices stay high.
Study the Las Vegas Real Estate Market
These are some of the most notable trends in the Las Vegas real estate market. If you want in on this market or compare it to other cities, check out some of our other related articles for additional information.