Why Invest in Las Vegas Real Estate?
As an investor, what’s not to love about Las Vegas real estate? After all:
- Las Vegas is the largest city in Nevada.
- The city features mild weather and a desert climate that's beautiful year-round.
- Lavish mega-casino hotels and world-renowned architecture create a revering ambience throughout the city.
- According to US News and World Report, the city's transportation infrastructure is ranked No. 1 in the country.
- Las Vegas has award-winning public transportation options, reliable roads and well-built bridges.
- Over 22,000 conventions are held in Las Vegas every year.
- The city’s key industries include aerospace and defense, manufacturing and logistics, as well as information technology, all of which play a major role in national security.
Investment Considerations for Las Vegas Real Estate
But, what factors should an investor look at to determine whether Las Vegas is truly a worthwhile investment? Well, there are a number of factors to consider, including:
- Economic diversity - In addition to featuring an array of diverse economic sectors, Las Vegas has a tax-friendly environment for industries. The leisure and hospitality sector dominates in terms of employment, comprising 28.3% of the total. The trade, transportation and utilities sector, and professional and business services sectors follow at 17.4% and 14.3%, respectively. The city is rich in natural resources, such as solar, wind, and geothermal energy, which continually attracts new businesses.
- Surging rental demand - Demand for rental housing in Las Vegas has increased over the past 10 years, with 2020 being exceptionally strong in spite of the COVID-19 pandemic. The average rent for properties in Mynd's portfolio increased 5% year-over-year to $1,420 a month at the end of November 2020. Occupancy also increased 1.4% during the same time period to nearly 96.8%, making Las Vegas the tightest real estate market in Mynd's rental property portfolio.
- Desirable destination - Las Vegas attracts millions of visitors, thanks to its infamous nightlife, gaming, and other leisure services. With nearly 42.1 million visitors annually generating a total revenue of more than $34.5 billion, tourism remains a stand-out industry. Las Vegas has more than 150,000 hotel rooms and has emerged in leveraging programs that include culinary arts, resort management, event management, and other services.
Where Are the Best Neighborhoods to Invest in Las Vegas?
Location is one of the key factors to consider when buying a rental property. The location, or neighborhood, should also include basic community services, a sound school district and a strong median household income in order to maximize your investment.
Pioneer Park, for instance, is a highly desirable place to live in the region. The best neighborhoods for investing in Las Vegas rental real estate, based on transaction volume are:
- The Lakes
- Peccole Ranch
- Canyon Gate
Our team has vast knowledge and experience in Las Vegas property management and can improve your investment experience. We provide you with insight on a number of topics, including investment opportunities, repairs and maintenance, leasing, and how to handle resident issues!
We look forward to furthering your rental property education.