- Las Vegas is visited by millions of tourists every year who come to enjoy the city’s world-famous casinos, entertainment, and nightlife.
- Underneath the glitz and glamour, Las Vegas is a family-friendly community with excellent schools, exciting outdoor destinations, and safe neighborhoods.
- With no personal or corporate income, Las Vegas is a tax haven that attracts high net worth individuals from around the world.
- The Las Vegas metro is one of the fastest-growing metropolitan areas and has a rapidly increasing number of renters.
- Luxury homes in Las Vegas come in various property types, including beautiful homes and estates, opulent condos, golf properties, and more.
Las Vegas is an iconic city famous for its glittering casinos, hotels, festivals, concerts, and performances. Known as the “Entertainment Capital of the World”, it is visited by millions of people every year who come to experience its legendary parties and attractions.
Tourism plays an important role in the city’s economy. Of Metro Las Vegas’s population of more than 2.2 million, about 15% are employed in the tourism industry and more work in related businesses. In the city of Las Vegas, around two-thirds of the city’s 650,000 population are employed in tourism-related activities.
Other industries also thrive in the area, including manufacturing, mining, and finance. Construction is a major employer as well, with new developments constantly rising in the metro to accommodate the ever-growing population.
Las Vegas was founded in 1905 by investor William A. Clark as a depot for the Union Pacific Railroad tracks, which Clark partly owned. The depot and station cafe included a casino, the town’s first. Growth was slow at first, except in one area where prostitution and gambling was legalized.
In 1910, after gambling was outlawed, the town entered its infamous era of underground casinos and speakeasies. The city incorporated in 1911 and saw tremendous growth in the 1930s with the re-legalization of gambling and the construction of the Boulder Dam (later renamed Hoover Dam).
The Strip was born in 1941 with the opening of El Rancho Vegas resort in the area where other large casino hotels were located. During and after WWII, Las Vegas became the site of several Cold War facilities, such as the well-known Nevada Test Site.
In the 1960s, millionaire businessman Howard Hughes bought a number of casino hotels in The Strip. From then on, gambling became “gaming”, and was given a legitimate mantle as a corporate-run business.
Las Vegas is part of the Mojave Desert in Southeastern Nevada and is spread across a broad valley surrounded by mountain ranges on the north, east, and west. The city and a few spots along the Colorado River are the only significantly settled areas in the desert.
The city of Las Vegas is the cultural and economic center of the Las Vegas Valley metropolitan area, which is coextensive with Clark County. The metro includes the cities of Henderson, North Las Vegas, and Boulder City, as well as 11 unincorporated communities, including Summerlin, Paradise, and Spring Valley.
Located in the heart of the desert, Las Vegas Valley’s closest neighbors include Pahrump, NV, Bullhead City, AZ, and Saint George, UT.
10 Reasons to Invest in Luxury Real Estate in Las Vegas
Luxury is a way of life in Las Vegas. All around the metro are upscale homes and gated communities where some of the world’s high net worth individuals reside or have a second home.
If you’ve been looking for great investment opportunities in luxury real estate, here are ten reasons why you should start your search in Las Vegas:
- The market is resilient
Home values in Las Vegas have been rising since 2012, increasing nearly 250% from December 2012 to December 2020.
Perhaps there’s no greater test on the market’s resiliency than the COVID-19 pandemic, and by all indications, Las Vegas is coming out on the winning end of it. Properties are currently selling at record highs, and rental homes remain in high demand.
Home prices in the city have increased by over 7% in the last 12 months and are expected to gain another 10.1% over the next year. The average rental rates are also up between 25.1% and 37.8% over the previous year, indicating a strong demand for rental properties.
- Las Vegas offers great quality of life that attracts high end home buyers and renters
Las Vegas’s unique economy, location, and history have given it a flavor all its own. From being a weekend getaway for fun seekers, the area has evolved into a highly desirable community that offers a high quality of life for young families, retirees, and everyone in between.
Living in Las Vegas means being close to the city’s world-famous attractions, fabulous shopping and dining, and amazing entertainment. Underneath the glamour, Las Vegas is a family-friendly community that offers fantastic outdoor opportunities. Some of Nevada’s top outdoor destinations can be found right here, including Red Rock Canyon, the Baja Sand Dunes, and Lake Mead Recreational Area.
There are numerous parks and recreation centers around the metro. Las Vegas also boasts highly rated schools, an excellent healthcare system, and upscale retirement communities.
- Luxury homes in Las Vegas cost less than in similar communities
When you buy a luxury home in Las Vegas, you get more value for your money. While average home prices in the metro are higher than the national average, they are comparatively lower than other major metropolitan areas, such as Los Angeles and New York.
As of October 2020, the median listing price of homes in Las Vegas was $181 per square foot. In Los Angeles, the median listing price for the same period was $552, while in New York, it was $618.
It’s not surprising that a considerable portion of movers to Las Vegas are from California, who are finding Las Vegas luxury properties to be a steal. Even the highest-priced custom homes in new developments in the metro are priced lower than comparable or even relatively inferior properties in Los Angeles, San Francisco, and similar metros.
There has been a rising demand for luxury homes in such communities as MacDonald Highlands, Henderson, Red Rock Country Club, and others, where luxury properties command much lower prices than those in other major metros.
- Tourism props up the economy
Las Vegas typically welcomes over 37 million tourists every year. While the city’s hotels are among its top draws, more and more tourists are opting to stay in luxury vacation rentals where they can get more space, freedom, and high-end amenities for less. With the popularity of short term stay platforms like Airbnb and VRBO, it has become much easier to find targeted renters for vacation properties.
As expected, tourism in the city has been severely affected by the COVID-19 pandemic. However, as vaccines are rolled out throughout the US and the economy regains strength, tourism in Las Vegas is expected to bounce back strongly.
While tourism is still visibly below normal levels, the number of visitors have slowly been rising, and is up to more than 1.8 million in October compared to only 151,000 in May, an increase of more than ten times. Wynn Resorts CEO Matt Maddox predicts that when the crisis passes, people will want to have a good time and Las Vegas will be the place to let loose.
- The metro’s tax benefits attract high net worth individuals
Las Vegas residents enjoy excellent tax benefits — something that attracts people from all walks of life, but is especially attractive to individuals with above average incomes. The state of Nevada does not impose personal income tax, corporate income tax, and tax on medicine or food. On top of this, the state has one of the lowest property tax rates in the country at only 0.69%, compared to the US average of 1.08%.
- The population is rising fast
A fast-rising population means greater demand for homes and rentals, pushing property values even higher.
From 1990 to 2000, Las Vegas’s population increased by around 85%. According to the US Census Bureau, Las Vegas was one of the 15 fastest growing cities in the US from 2017 to 2018. In 2020, the metro’s population rose 2.98% from 2019, and from 2016 to 2019, it recorded annual growths of around 3.15% to 3.68%.
During the pandemic, Las Vegas has also benefited from the exodus of people from expensive, congested areas into more affordable and spacious locations. With working from home predicted to be the trend well beyond the pandemic, many residents of nearby California who now don’t have to live close to offices have finally found a good reason to uproot themselves and settle in relatively less expensive markets like Las Vegas.
- The rental market is growing
With the fast growing population, the rental property market has also been rising fast. While homeowners still outnumber renters at 51% and 49% respectively, the number of renters have been increasing dramatically over the past decade. More than 75% of renters in the city moved into the area only between 2010 and 2016.
In a 2018 report, Rentcafe has ranked North Las Vegas as one of the top 10 cities with the largest increases in renter share, registering a 38.5% increase from 2006 to 2016.
The average rental rate in the city has also been rising. Despite the pandemic, the average rent for an apartment as of November, 2020 was up 2.86% from the previous year. The average rent for an apartment with three bedrooms has gone up 7% from 2019.
Rental properties in Las Vegas include luxury and affordable homes and apartments. Neighborhoods with the highest priced rentals include Sun City Summerlin, Downtown Las Vegas, and Painted Desert.
- Las Vegas is a haven for retirees
Baby boomers have become an important market segment in real estate. Las Vegas’s 300 days of sunshine, generous outdoor spaces, casinos, golf courses, and other entertainment options have made it a natural magnet for retirees. The metro’s excellent healthcare services and no income tax policy are also among the top reasons retirees are choosing to move to the area.
In SmartAsset’s 2020 study of cities where retirees are moving, North Las Vegas was ranked 9th, with 1,508 people ages 60 and older moving into the city in 2018 and only 400 moving out. In 2018, Nevada ranked fifth in the US for the number of retirees moving in.
According to this report, during the pandemic, there has been an increase in demand for Las Vegas properties from retirees and empty nesters who are looking for relatively more affordable homes with larger outdoor areas.
Las Vegas is home to several upscale 55+ communities where residents can enjoy their choice of activities, excellent care, and beautiful and comfortable housing. In addition to these specialized developments, many homes around the metro also match what retirees are looking for in what will likely be their last home purchase.
- A strong economy
Before the pandemic, Las Vegas’s economy has been booming, in large part because of the tourism industry, but also because of growth in other sectors, such as tech, healthcare, manufacturing, and even sports. The metro had recovered well from the recession of 2008 and was attracting new residents for the numerous job opportunities it provided.
The COVID-19 pandemic has greatly affected the metro’s tourism dependent economy, but as the country gears for a rebound with the roll out of vaccines, Las Vegas’s economy is expected to bounce back, as well. The unemployment rate rose to 30% in the spring, but is now down to about 12% after the phased reopening of tourism-related businesses, which started in May.
If the high unemployment rate continues in 2021, analysts predict a slight cooling of the real estate market, which augurs well for bargain hunting home buyers and investors. The most likely scenario does not include lower home values, but merely slower price growths relative to the previous years.
- Amazing luxury properties
Luxury homes in Las Vegas come in many property types, from stunning estates and sprawling ranches to opulent condos and apartments. You have a choice of views — whether it’s the glittering skyline, manicured golf courses, or the breathtaking desert. These homes boast gorgeous architecture, top-of-the-line finishes, landscaped yards, and everything you can expect in some of the most upscale properties in the US.
The amenities in Las Vegas luxury properties are second to none. They include private swimming pools and spas, clubhouses, golf courses, fitness centers, and more. Many are new builds, but there are also plenty of resales with updated features. You’ll also find a few properties that need some TLC, which make great investment options.
Since it opened in the 1990s, the master-planned community of Summerlin has been one of the most prestigious addresses in Las Vegas, with luxury homes in exclusive enclaves considered as some of the most coveted residential areas in the metro.
Properties in golf communities are also among the top draws. Boasting golf courses designed by legends of the sport, communities like Red Rock Country Club, Canyon Fairways, and Tournament Hills are highly sought after in the metro.
Other luxury properties in Las Vegas are found in secure guard-gated communities, some featuring exclusive golf courses as well. Properties in these neighborhoods include single-family homes and estates, townhomes, and condos, coming in a wide range of prices and sizes to match the needs and preferences of different homebuyers. Explore your options at Anthem Country Club, Bellacere at The Canyons, Desert Shores, Quail Ridge Estates, and many more.
Luxury high-rises are also in great demand in the metro. Check out Allure, Palms Place, Panorama Towers, and more for condos and apartments with amazing city views and the best access to everything Las Vegas has to offer.
Learn More About Luxury Real Estate Investment Opportunities in Las Vegas
As a Las Vegas real estate expert, I can guide you to your best options in the valley and make sure you achieve your real estate investment goals without the stress that often comes with the process.
For more than 14 years, I have been specializing in luxury homes and high rises throughout the valley, including in the cities of Las Vegas, Henderson, North Las Vegas, and Boulder City, as well as the communities of Summerlin, Paradise, and the rest of the metro.
I know where and how to find the property that perfectly matches your needs and preferences. If you’re selling a property, I will leverage my know-how and experience to help you close a sale fast and at the highest price.