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Hoping for a drop in Las Vegas property prices in 2025? Don’t count on it.
Despite economic shifts, the Las Vegas market is poised for growth, with increasing demand and strategic developments driving prices up.
Let’s explore why property values in this vibrant city are expected to rise in the coming years.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this information, we draw our own conclusions, which we share at the end of this blog post. Enjoy the read!
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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1) Las Vegas boasts an impressive livability score of 82, highlighting its excellent quality of life
Signal strength: strong
The livability score of 82 in Las Vegas is considered excellent because it reflects a high quality of life.
One reason for this is the abundance of entertainment options, including world-class shows, dining, and nightlife, which attract both tourists and residents. Additionally, Las Vegas has a favorable climate with over 300 days of sunshine annually, making it an attractive place to live for those who enjoy outdoor activities.
Moreover, the city offers affordable cost of living compared to other major cities in the United States, which is appealing to potential homebuyers. These factors contribute to the assumption that housing prices are likely to increase in 2025 as more people are drawn to the area.
However, if the livability score were to drop below 70, it might indicate a decline in desirability, potentially affecting housing prices negatively.
Source: AreaVibes
2) In Las Vegas, there are only about "0.40 homes" for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.40 home per inhabitant in Las Vegas indicates a relatively low housing availability.
This scarcity can drive up demand, as more people are competing for fewer homes, which often leads to increased housing prices. Las Vegas is a popular destination not just for tourists but also for people looking to relocate, thanks to its unique entertainment and lifestyle offerings.
Locals know that the city is constantly growing, with new businesses and attractions, which can further increase the demand for housing. As demand continues to rise, the limited supply of homes, indicated by the 0.40 home per inhabitant ratio, suggests that prices are likely to go up.
If the ratio were to increase significantly, say to 0.60 home per inhabitant, it might indicate a more balanced market, potentially stabilizing or even lowering prices.
Source: USCensus
3) Las Vegas home values have risen by 5.0% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Las Vegas have already changed by 5.0% since last year is a strong indicator of a rising trend in the housing market. This increase suggests that demand is growing, and if this trend continues, it could lead to further price hikes in the future.
Currently, the median home price in Las Vegas is around $425,796, which reflects the current market conditions. Additionally, the median sales price per square foot is about $260, showing that buyers are willing to pay a premium for space.
These figures indicate that the market is healthy and potentially lucrative for investors. If the trend of increasing home values persists, it could mean even higher returns on investment by 2025.
However, if the home value change were to drop below 2%, it might suggest a cooling market, which could alter the current assumptions about future price increases.
Source: Redfin
4) Las Vegas has a low of 8.0%, showing it's a bustling and competitive market
Signal strength: moderate
The vacancy rate in Las Vegas is currently at 8.0%, which is considered very low. This low vacancy rate suggests that the market is highly occupied and competitive, meaning there is strong demand for housing. When demand is high and supply is limited, it often leads to increased housing prices as more people compete for fewer available properties.
In such a market, properties that are easily rented are typically well-maintained and located in desirable areas. Specifically, modern apartments in the Summerlin area are highly sought after. These properties offer convenient access to amenities and are in a location that appeals to many renters.
If the vacancy rate were to rise significantly, say to above 12%, it would indicate a shift towards a less competitive market. This could potentially lead to stabilizing or even decreasing housing prices as supply begins to meet or exceed demand.
Sources: NeighborhoodScout, DataUSA, USCensus
5) Over the past decade, home prices in Las Vegas have consistently risen by an average of 10.2% each year
Signal strength: moderate
The fact that home prices in Las Vegas have appreciated at an average rate of 10.2% over the last decade is noteworthy.
This consistent growth in home values suggests a strong history of demand and price increases. Such a trend can indicate favorable conditions for future price growth, making it an attractive prospect for potential investors.
However, it's important to remember that past performance doesn't guarantee future results. Despite this, historical data can still be a valuable indicator when assessing market potential.
If the average appreciation rate were to drop significantly, say below 3% over a similar period, it might suggest a different market outlook.
Source: NeighborhoodScout
6) Two major websites predict that home prices in Las Vegas will rise in 2025
Signal strength: moderate
When considering the future of the Las Vegas housing market, it's noteworthy that two major websites are forecasting positive growth for home prices in 2025.
Among these forecasts, Realtor is the most optimistic with a prediction of a 12.30% increase, followed by Redfin's forecast of a 4% rise. In contrast, Zillow predicts a slight decline of -0.80% for home prices, highlighting a significant gap in expectations.
While these forecasts provide valuable insights, it's crucial to remember that predictions should be approached with caution. We will also rely on strong, reliable, and current data to make informed investment decisions.
If the majority of forecasts were to predict a consistent decline in home prices, it would suggest a different market outlook.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
7) In Las Vegas, about 23% of homes sell for more than their listing price
Signal strength: minimal
In Las Vegas, around 23% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is fierce and they are eager to secure a property.
This kind of market behavior suggests that housing demand is outpacing supply, which typically leads to an increase in prices. As more buyers compete for fewer homes, sellers gain the upper hand and can command higher prices.
Such a trend is a clear signal that housing prices are likely to rise in the near future, possibly by 2025. However, if the percentage of sales closing above the listing price were to drop significantly, say below 10%, it might indicate a cooling market where prices could stabilize or even decrease.
Source: Zillow
So, are prices going to climb in Las Vegas in 2025? Absolutely
Las Vegas is poised for a price increase in 2025, driven by several compelling factors.
First, the city boasts a livability score of 82, indicating a high quality of life with abundant entertainment options and a favorable climate. This makes it an attractive destination for potential homebuyers, contributing to the likelihood of rising housing prices. Additionally, the low housing availability of about 0.40 homes per person creates a scarcity that drives up demand and prices.
Moreover, home values have already risen by 5.0% since last year, and the low vacancy rate of 8.0% further underscores the competitive market. Historical data shows a consistent 10.2% annual appreciation over the past decade, suggesting a strong trend of price growth. Forecasts from major websites also predict increases, with Realtor expecting a 12.30% rise in 2025. Lastly, about 23% of homes sell above their listing price, indicating fierce buyer competition and a strong demand that is likely to push prices higher.