Preeminent on many investors’ minds are the questions: “Why is the Las Vegas real estate market growing so rapidly?” and “Will it stop any time soon?” There are multiple factors that answer the first question, and the answer to the second, at least for now, appears to be a resounding “No.”

Las Vegas Real Estate

Las Vegas real estate is booming, and those seeking to buy a home in the area should do so now before Las Vegas properties appreciate in value any more. Las Vegas is the fastest-growing city in the nation (its population doubled between 1985 and 1995), and new home prices have been going up, on average, 8% yearly.

These statistics are amazing, but why is Las Vegas growing so fast? Here are some of the reasons:

• Nice weather—for those who like it hot. The average daily high in the city is 80 degrees year round. Las Vegas is also one of the sunniest cities nationwide, with 320 days of sunshine during an average year.
• Low taxes. There is no personal income tax in Nevada, and Nevada in general has the lowest tax rate of any state in the U.S. In addition to this, many businesses are attracted by the lack of corporate taxes, which means that there is a constant influx of new jobs. As a result, job growth was 2.8 percent in 2002, impressive when you consider that the economy was suffering a downturn and most areas were losing jobs. And especially pertinent to real estate is the fact that property taxes in Vegas are also low—currently they are at $11 for each $1,000 in property value.
• Home appreciation. The increase in housing prices has not discouraged people from moving to the area—quite the reverse, as people plan to invest their money to take advantage of Las Vegas real estate’s speedy appreciation. Although land prices are now about $200,000 per acre, the amount of existing-home sales increased by 12.2% from 2001 to 2002.
• Los cost of living. The cost of living in Las Vegas, and in Nevada in general, is lower than nationwide averages, enabling residents to get more for their dollar (unless, perhaps, they’re spending it at the blackjack tables).

For those looking to jump on the bandwagon and take advantage of Las Vegas home appreciation, one of the hottest markets currently is to be found in the suburb of Henderson, which currently has the highest median new home price in the Las Vegas Valley, but whose homes are also appreciating the most rapidly. Home values in some areas of Henderson nearly doubled between 2000 and 2004.

Many real estate experts foresee no signs of the housing boom in Las Vegas slowing down or stopping. The public relations director for First American Title predicts that only a major downturn in the economy could cause local land prices to drop. And if your motivation for putting money into Vegas real estate is short-term investment, chances are that trying to cash in on that investment will require a minimum amount of hassle. The average home in Las Vegas sells within a mere 45 days.

So, as John Burns Real Estate Consulting advises, “Place your bet in the Las Vegas [housing market].” Although investing in Las Vegas real estate right now really isn’t much of a gamble, especially when compared to other favorite Las Vegas pastimes like slot machines and poker.

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®