Condo, townhome prices in Southern Nevada reach all-time high in April

LAS VEGAS (KLAS) – Condo and townhome prices in Southern Nevada reached an all-time high in April 2024.

Single-family homes have priced many out of the market as well. Experts said the cost is driven up by a myriad of things including low inventory and cash investors.

The American Dream. Homeownership. However, in Southern Nevada, 40% of homes are rentals and as prices continue to climb that dream is further away for many.

More than 2.3 million people live in Clark County and Southern Nevada continues to entice new residents.

“I think what makes Las Vegas really attractive for folks is it’s still an in-demand area. We’re still seeing an inflow of people moving into the area,” Nic Irwin the Research Director at UNLV’s Lied Center for Real Estate said. “There’s still a lot of jobs.”

However, that attraction also lures in investors and has drawn the ire of lawmakers who’ve sponsored legislation to take Wall Street out of Main Street. However, Irwin said only about 15% of rental homes in Southern Nevada are owned by cash investors with multiple units.

Irwin acknowledged that for sellers, “it’s really attractive, an all-cash offer.” However, he said by taking an owner-occupied home off the market and turning it into a rental, home prices can go up because of lower inventory.

“You’re getting more rental units, and potentially more rental units could mean lower rental prices.” he added. “So it depends on which side you look at, it could be good or bad.”

Ultimately Irwin said the biggest issue is too many people and not enough housing.

“Just build more housing. I’m a big fan of building more housing everywhere because if we increase that supply, we have more houses that could be rental houses,” he said. “We have more houses that exist for people to buy.”

Builders have the same issue as buyers.

“Unfortunately, where the market is today, it’s hard to get anything financed,” Randy Bury said. He’s the founder of Moderne Communities.

“This is a difficult housing cycle I think for everybody right now,” he added.

While building may have slowed, Bury’s unique build-to-rent approach offers another option for those priced out of buying.

“A lot of buyers don’t have 20% down,” Bury said.

He was one of the first in the valley to create new housing specifically for renters.

“We get a lot of single parents that live in my style communities. Or single professionals or retirees that just want that lock and leave lifestyle. The community in North Las Vegas offers everything including doggie doors and pocket parks,” he said, “It’s a lifestyle.”

However is it the housing of the future?

“I think there will be a lot of different housing in the future,” Bury said. “It’s just a different choice.”

It’s a choice that Irwin said could expand when interest rates drop.

“I anticipate there will be a lot of movement,” he said.

He also pointed to many that he said are in the wrong size home right now, but don’t want to move because they’re locked into a good rate. He expects the movement to happen when people wanting to move into bigger or smaller homes are able to find that mobility without higher finance rates.

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