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nvestor interest in Las Vegas real estate has surged, placing the city on par with San Jose as a top magnet for investor buyers. According to a recent study by Redfin, investor purchases in greater Las Vegas increased by 27% year-over-year in the last quarter ending in June. Redfin defines an investor purchase as a deal made by a company rather than an individual. The specifics of these transactions, including the total number of investor home buys and the companies involved, were not disclosed.
Las Vegas has made its way into the top five cities with the highest share of investor-bought homes at the end of the second quarter, with a share of 22.3%. Miami leads the country with a share of 28.5%. Chen Zhao, head of Redfin Economics Research, attributes this attraction to several factors. He believes investors may be drawn to Las Vegas due to increasing rents, which are outpacing the national median. Additionally, as a popular tourist destination, short-term rentals also serve as an attractive reason for investors to buy property there.
A study conducted by the Lied Center for Real Estate at UNLV last year found that corporate investors own approximately 14% of all residential single-family housing stock in the valley, and a staggering 25% of North Las Vegas specifically.
Investor activity nationwide has seen a significant increase in the past two years, with purchases totaling $43 billion in the second quarter alone, a 13.7% increase from the same period last year, according to Redfin.
The price of a typical single-family home in greater Las Vegas rose 7.7% year-over-year in June to $475,000, just $7,000 shy of the all-time high set in May 2022. Real estate players who spoke to the Review-Journal attributed this rise to federal control of most of the land around Las Vegas, which has limited development and driven up costs on residential and commercial properties.
While home prices in Las Vegas hit near-record highs, sales have slowed down. This trend is reflected in the price of a typical single-family home in greater Las Vegas, which rose 7.7% year-over-year in June to $475,000 — just $7,000 off the all-time high set in May 2022.
The suspension of the CEO of Las Vegas Realtors on claims of election tampering has raised concerns about the integrity of the organization's elections. The suspension has sparked an investigation into the allegations, with many questioning the fairness of the election process.
Airbnb operators in Las Vegas have been fined $55,000 for illegal short-term rentals. This move comes as part of a larger effort to crack down on illegal short-term rentals in the city, which has been a contentious issue among residents and city officials alike.
