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Thinking about investing in Las Vegas real estate in 2025? You're on the right track.
Despite economic shifts, the Las Vegas market shows promising signs of growth and stability.
In this blog post, we will explore why investing in this vibrant city is a smart move.
We rely on solid, up-to-date data and statistics from trusted sources to guide our analysis.
By the end, you'll see how we carefully examine the facts and draw our own conclusions. 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, indicating a high quality of life for residents. This score reflects several factors, including the city's vibrant entertainment scene, which is a major draw for both tourists and locals.
Las Vegas is known for its world-class dining and shopping options, offering a diverse range of experiences that cater to various tastes and preferences. Additionally, the city boasts a strong sense of community with numerous events and activities that bring people together, enhancing the overall living experience.
Another key factor contributing to the high livability score is the favorable climate, with abundant sunshine and mild winters, making it an attractive place to live year-round. These characteristics make Las Vegas a desirable location for potential homeowners, suggesting that investing in property here could be a wise decision.
However, if the livability score were to drop below 70, it might indicate underlying issues that could affect the attractiveness of investing in real estate in the area.
Source: AreaVibes
2) Las Vegas has a low "vacancy rate" of 8.0%, showing it's a bustling and competitive market
Signal strength: strong
The vacancy rate in Las Vegas is 8.0%, which is considered very low. This low vacancy rate indicates that the market is highly occupied, meaning there is a strong demand for rental properties.
When demand is high, it often leads to increased rental prices and competition among renters, making it a favorable environment for property investors. In such a market, properties that are well-maintained and located in desirable areas, like modern condos in the Summerlin area, are easily rented out.
These types of properties attract tenants due to their proximity to amenities and vibrant community life, ensuring a steady stream of rental income. As an investor, this means you can expect consistent occupancy and potential appreciation in property value over time.
If the vacancy rate were to rise significantly, say to 15% or higher, it might indicate an oversupply of properties, making it less attractive for investment.
Sources: NeighborhoodScout, DataUSA, USCensus
3) By 2026, Las Vegas infrastructure projects like "Brightline West" and "Las Vegas Loop" are expected to significantly increase real estate values
Signal strength: moderate
Las Vegas, known for its vibrant entertainment scene, is on the brink of a transformation with several major infrastructure projects set to boost its appeal by 2026.
The Brightline West High-Speed Rail Project, connecting Las Vegas to Southern California, is a game-changer for connectivity. By reducing congestion and emissions, and creating thousands of jobs, it positions Las Vegas as a more attractive place to live and work, potentially boosting real estate values.
Meanwhile, the Las Vegas Loop Expansion aims to improve transportation efficiency for both residents and visitors. With new stops at key locations, it enhances the convenience of living near these stations, likely increasing property demand and values in those areas.
The Maryland Parkway Bus Rapid Transit Project promises to revitalize local transportation by offering safer and more efficient travel options. This improvement in accessibility and livability could make nearby neighborhoods more desirable, driving up real estate prices.
Additionally, the Skyline Project, a new dining and entertainment hub, is set to enrich lifestyle options in southwest Las Vegas. By attracting more residents and businesses, it could lead to increased property values due to the enhanced amenities.
Sources: Exhibit City News, UNLV News, KTNV
4) Las Vegas is experiencing population growth, with numbers rising by 1.86%
Signal strength: moderate
The population growth in Las Vegas is a key indicator of economic vitality and potential for property investment. As more people move to the area, the demand for housing naturally increases, which can lead to higher property values over time.
Analyzing the recent trends, Las Vegas has experienced a consistent upward trajectory in population, with a 1.86% increase from 2023 to 2024. This steady growth suggests a thriving local economy and an attractive environment for new residents, which are positive signs for real estate investors.
Moreover, the population forecast indicates continued growth, with a projected 4.2% increase over the next five years and a 9.3% increase over the next decade. These projections highlight the long-term potential for property appreciation, making Las Vegas a promising market for those looking to invest in real estate.
In addition to the metro area's growth, the city of Las Vegas itself is expanding, albeit at a slower rate of 0.71% annually. This growth within the city limits further supports the idea that there is a sustained demand for housing, which can lead to increased rental income and property value appreciation for investors.
Sources: Macrotrends, Synergos Technologies, World Population Review, Aterio
5) Airbnb or "short-term rental" in Las Vegas offers a fairly appealing profitability rate of 4.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Las Vegas is 4.0%, which indicates a moderate level of profitability for property investors.
This return suggests that investors can expect a reasonable income from short-term rentals, making it an attractive option for those looking to enter the market. Las Vegas is a popular destination for tourists and short-term visitors, who often seek accommodations for events, conventions, and vacations.
These visitors typically include business travelers, vacationers, and event attendees, all of whom contribute to the demand for short-term rentals. The city's vibrant entertainment scene and year-round attractions draw a diverse crowd, ensuring a steady flow of potential tenants.
If the cash-on-cash return were to drop below 2.0%, it might indicate a less favorable investment environment, suggesting that the market could be less profitable for property owners.
Source: Mashvisor
So, is it a good time to invest in Las Vegas real estate in 2025? Absolutely, it is.
Investing in Las Vegas real estate in 2025 is a solid option due to several compelling factors.
First, the city boasts a livability score of 82, indicating a high quality of life with excellent amenities and a strong sense of community. This makes it an attractive place for potential homeowners and renters alike. Additionally, the low vacancy rate of 8.0% highlights a bustling and competitive market, ensuring strong demand for rental properties and potential for increased rental prices.
Moreover, upcoming infrastructure projects like the Brightline West High-Speed Rail and the Las Vegas Loop are expected to significantly boost real estate values by enhancing connectivity and transportation efficiency. The city's population growth, with a 1.86% increase from 2023 to 2024, further underscores the economic vitality and sustained demand for housing, promising long-term property appreciation.
Finally, the cash-on-cash return of 4.0% for Airbnb properties suggests a reasonable income potential from short-term rentals, driven by Las Vegas's popularity as a tourist destination. These factors combined make investing in Las Vegas real estate in 2025 a promising and strategic decision.