C
orporate investors are aggressively expanding their portfolios of houses across Las Vegas, with a record-breaking $1 billion spent on properties this summer. According to Redfin data cited by the Las Vegas Review-Journal, investor purchases surged 27.9% in the third quarter compared to the previous period, outpacing other major cities like Seattle and San Jose.

    While investor activity nationwide has plateaued, with a 2.3% decline in home purchases this quarter, Las Vegas continues to attract corporate buyers. In fact, investor purchases in the city jumped 27% year-over-year in the second quarter. Redfin defines an investor purchase as a deal made by a company rather than an individual.

    Investors tend to target low-priced homes, often using cash offers that compete with first-time buyers. However, few young adults are buying homes in Las Vegas, with many being outbid by Baby Boomers in the sizzling market. Data specialist Dana Anderson notes that investors find low-priced homes appealing due to their lower cost and potential for higher returns when resold or rented.

    Las Vegas stands out as one of the cities with the smallest investor capital gain margins for home sales, ranking second in the nation at 34%. In contrast, investors made significant gains in other cities like Detroit, where they earned approximately 135% in the third quarter.