Las Vegas is less affordable than Denver, Phoenix and Tampa Bay, report says

The Las Vegas Valley is the 19th least affordable metro for housing in the country, according to a new report from Redfin.

The report says the valley is less affordable than such major metros as Denver, Phoenix and Tampa Bay, Florida, based on the share of income needed to buy a median priced home in the area.

Las Vegas’ median home price currently sits at $439,359, which equates to a $2,870 monthly mortgage payment. The median household income in the valley is $77,943, which means average residents have to spend 44.2 percent of their monthly income on their mortgage payment.

Redfin chief economist Daryl Fairweather said California is obviously one of the top driving factor for higher home prices in Las Vegas.

“Demand for housing in Las Vegas has increased as more people from coastal metros like Los Angeles, San Francisco and Seattle have moved into the metro,” she said. “Those newcomers can afford the high price of housing, but local wages have not increased as much as housing costs. Development of new housing has improved in recent years, but it’s not enough to meet demand.”

The recent wildfires in Los Angeles are also expected to put increased pressure on the valley housing market however quantifiable data has yet to come in regarding home price and rental statistics. Las Vegas already finds itself in the middle of a housing crisis caused by a number of factors including a lack of land to develop, elevated mortgage rates, a slowdown in homebuilding and increased construction and labor costs.

December data from the Las Vegas Realtors shows that home sales in Southern Nevada were up in 2024 compared with the previous year — the worst year for sales since 2008 — and prices could be starting to drop.

A total of 31,305 existing homes, condos and townhomes sold during 2024, according to the latest data from LVR, which pulls its numbers from the Multiple Listing Service. That’s nearly an 8 percent increase from the previous year when 29,069 houses, condos and townhomes sold. Notably, 2021 was a record year when 50,010 properties sold and 35,584 sold in 2022.

A new report from Wells Fargo is predicting another tough year for residential real estate in the valley due to a number of factors as that home price appreciation in the area is softening however home prices are still growing faster than the national average.

Home prices were up nearly 5 percent year over year in November, according to CoreLogic, which is higher than the U.S. average rate of 3.4 percent. Home inventory improved alongside the slower sales pace, but housing supply remains constrained by high mortgage rates. Realtor.com shows active listings in the Las Vegas metro increased 42 percent over the past year as of December 2024 but are still 17 percent under pre-pandemic levels.

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.