When people think of Las Vegas, they often think of sin city: the strip, the casinos, the debauchery. But the reality of Vegas is often different from this perception. The Las Vegas metro area has a population of 2.7 million residents, making it a booming metropolis that is home to much more than just luxury resorts and gambling dens.
Vegas is a growing city, one that has seen its population climb in recent years. With that has come a growth in the housing market. One particular area that has been seeing explosive growth in Las Vegas is the luxury real estate market.
If buyers aren’t tied down by the necessity of being near where they work, they will consider buying real estate in other areas.
A luxury home is qualified as a house that is priced at $1,000,000 or over. According to the Las Vegas Review-Journal, in September of 2020, there were 96 sales of luxury properties in Las Vegas.
This is the all-time high, with the previous high taking place in May of 2019, with a significantly lower amount of homes sold at 74. Through the end of September, according to the Multiple Listing Service, there have been 502 sales of luxury houses and condos. Through September 2019, there had been 431 sales of luxury residences. The numbers indicate that unquestionably, luxury real estate in Vegas is booming. But why?
For one, many cities in the Western states have seen the benefit of migration from California. Many of California’s wealthy residents have grown tired of the high tax rates, and a litany of other problems in the state.
Cities like Seattle, Portland, and Vegas have all seen high-income, career-oriented buyers migrate in high volume from California to their cities. The California residents can identify that the real estate in Nevada is significantly cheaper, taxes are lower, and in general, their money will take them further than it would in San Francisco or Los Angeles. Former California residents who have more disposable income are a big reason for the boom of the luxury real estate market.
Another reason for the growth in this area is the COVID pandemic. While many people are left in a financially strenuous situation, chances are, these are not the people who would have been buying luxury real estate anyway. Most people who are employed and financially stable have been able to transition into a work from home position.
Many businesses have seen that working from home can be feasible even in a post-COVID world, with companies like Facebook and Twitter announcing that their employees would be allowed to work from home even after the pandemic has ended, according to another article by the Las Vegas Review-Journal.
Because of this, more people can relocate to newer areas. If buyers aren’t tied down by the necessity of being near where they work, they will consider buying real estate in other areas. As well, the importance of having space to work has increased greatly.
While many people value having a home office, it has become more essential than ever over the course of this pandemic. Many people are looking to trade up into more spacious luxury homes, as a solid workspace becomes vital to their career.
These factors have all contributed to the Las Vegas luxury real estate market seeing a verifiable boom. This pandemic has caused many people to reassess a lot of different aspects of their lives, and created flexibility when it comes to location. If people aren’t tied to where their offices are located, many will head to a place with cheaper real estate that can provide them with the necessary space to work.
This is what we’ve seen as Californians migrate out in large numbers. Las Vegas is more than just a city of casinos and clubs. It is a growing metropolis that presents moderately affordable, spacious luxury real estate, especially when compared to their neighboring state on the West. While predictions of the future are difficult in these uncertain times, it appears likely that the real estate market in Las Vegas will continue its boom.