Las Vegas has always been a rather unique real estate market. We’re out here in the desert, which has its rewards and its challenges, and our housing market has been identified as a great opportunity by out of state investors and even investors who live outside of the country. There are more and more people moving into the area, and the recent jump in interest rates all last year made home buying unaffordable for many people, leaving them in the already-crowded rental market.
That’s great news if you’re an investor with a home for rent.
This is a strong and competitive market for just about any real estate investor. However, it always comes down to your investment goals and your desired outcomes. What looks like success to you when you think about real estate investing?
If you’re thinking about Las Vegas for your next real estate investment venture, you need to understand that there’s a lot more to the Las Vegas market than the slot machines and dice found on the strip. This is a market that’s attracting students, professionals, and entrepreneurs. There are remote workers coming here for a year or longer.
A lot is happening in Las Vegas. If you’re going to invest here, make sure you have a firm foundation on what you’re looking for and why.
Work with professional Las Vegas property management professionals, too. Especially if you want to succeed and avoid easy mistakes.
This 2024 real estate investing guide will walk you through the ups and downs of the Las Vegas property market, offering insights, strategies, and expert tips to help you make prudent investments in the year ahead.
Start with Where You Are: What Are Your Investment Goals?
Setting investment goals is an important first step in investing in Las Vegas, whether you’re buying property for the first time or expanding on a growing portfolio.
You know you want to invest here, but do you know why you want to invest?
Set some serious investment goals and put them in writing. To make successful real estate investments, you need to know why you’re investing and what you’re hoping to accomplish. Make a one-year plan, a five-year plan, and a long term plan that even outlines how you might get out of the investment down the road. Having an exit strategy before you even begin might seem silly, but it’s a good idea.
These investment goals should drive every decision you make. They will keep you on track.
Las Vegas Real Estate: Where It Stands Today
Don’t invest in Las Vegas without doing some basic market research.
Las Vegas’ real estate landscape has been a rollercoaster of a journey, especially if we are thinking about where we’ve come since the depths of the 2008 financial crisis. During the worst of that crisis, Las Vegas home values dropped by 60 percent, which was twice the national average. This market saw a record number of foreclosures. Have we learned from those dark days? It seems that in some ways, we have.
Since then, this market has effectively reached new heights. Today, the city’s market is characterized by robust growth, but maintaining this upward trajectory isn’t without its challenges. Factors such as increasing demand, new construction, and fluctuating prices all contribute to a vibrant but sometimes turbulent sector, ripe for those who can navigate its peaks and troughs.
Market Outlook for 2024: Trends and Projections
Industry analysts and Las Vegas real estate veterans agree on forecasting a continuation of the city’s upward trend in 2024, albeit with a pace that’s slightly more measured than what we’ve seen over the last two or three years. Las Vegas is a desert metropolis that’s unlike any other city in the world. It remains a target for domestic migration and growing housing demands, underpinned by a diverse economy and a progressive attitude towards development. Suburban areas are expected to see significant growth, mirroring national trends as remote work reshapes buyer preferences and priorities as well as renter trends.
Key Factors to Consider Before You Buy
How can you effectively invest in Las Vegas real estate knowing what your own investment goals are and how the market is shaping up to look in 2024? Here are some of the things that we talk to investors about all the time, when they come to us for professional help in identifying smart investments.
- Location and Neighborhood Analysis
Choosing the right location is paramount in any real estate investment. In a city like Las Vegas, a neighborhood analysis involves delving into not just convenience and aesthetics, but also the local housing market conditions, potential for appreciation, and the community’s resilience against diminished economic conditions. When you identify a property you might like to buy, we’ll talk to you about what it’s likely to earn in rent and how long it might take you to rent it out, based on repairs and upgrades that may be necessary.
- Rental Demand and ROI Potential
As an investor who is especially interested in buying rental properties, understanding the high and low points of the rental market is crucial. Las Vegas has historically seen a high demand for rentals, driven by an influx of tourists and workers. You’ll have an option to invest in short-term or long-term rental properties. By examining vacancy rates, tenant profiles, and rental yield potential, you can calibrate your investment to maximize returns.
- Financing Options and Interest Rates
Financing shapes the affordability and profitability of your investment property in any market, including Las Vegas. Current interest rates, availability of loans, and your own financial standing will outline your options. Be prepared to explore conventional mortgages, hard money lending, or private investment, depending on your long-term strategy. Maybe you’ll pay in cash. All options should be left open, depending on where things stand. Right now, interest rates remain high, so investors are entertaining other options.
Investment Strategies: Deciding on Your Path
We’ve talked about the importance of understanding your own investment goals. That’s going to help you decide what kind of real estate investor you want to be in this particular market. Las Vegas real estate in 2024 presents lucrative opportunities and requires various strategies.
- Long Term Rental Properties
For a stable income stream and recurring and consistent rental income, long-term rental properties are a pillar of the Las Vegas real estate landscape. Single-family homes and multifamily units can provide consistent returns, especially when managed efficiently with the right tenants in place and careful maintenance and upgrades. This is where a lot of your opportunities rests for both short-term rental income and long-term appreciation and equity builds.
- Vacation Rentals
With tourism a cornerstone of Las Vegas’ economy, the city’s vacation rental market can be a lucrative niche. Short-term rentals are in high demand here, even with the abundance of hotels we have here. When you’re thinking about vacation rentals, keep in mind that market conditions and regulations can change quickly, and properties must be tailored to appeal to short-term renters.
- Commercial Real Estate
Las Vegas’ burgeoning tech sector and expanding local businesses present opportunities in the commercial real estate market. Warehouses, office space, and retail properties all have their rewards, depending on your risk appetite and industry foresight.
Be Willing to Face the Risks When Investing in Las Vegas Real Estate
No investment comes without its share of risks. Las Vegas real estate is no exception. Here, you’ll have to worry about market volatility. We’re in a very strong position now, but as you probably know, real estate markets can be sensitive to external factors. In Las Vegas, seasonal demand from tourists and broader economic fluctuations can impact property values.
There are also some pretty strict and detailed rental laws to be aware of. For short-term rentals, there are zoning regulations and tax laws. Long-term leases are required to follow security deposit and habitability laws. Staying informed and flexible is essential.
Finally, local and national economic trends can ripple through the real estate market. As Las Vegas diversifies, it becomes less reliant on tourism but is not immune to broader economic trends.
Property Management Advice for the Las Vegas Investor
Seeking wisdom from those who have lived and worked in this market is invaluable. Partner with a Las Vegas property management partner sooner rather than later when you decide you’re ready to invest. It doesn’t have to be a gamble.
Careful planning, local knowledge, and the right strategy are your keys to success. By understanding the trends, considering the key factors, and seeking counsel from those who know the city best, you can build a profitable portfolio in one of the most dynamic housing markets in the U.S.
Your journey into Las Vegas real estate is possible. When you are ready to navigate the market and the properties that are available here, we’re ready to guide you. Please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.
