Learn more about the housing market in Nevada

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  

Nevada Housing Market Overview 

Nevada has much to offer its residents and prospective homeowners. Although the state is generally dry and mountainous, its geography and climate vary from sandy dunes to semiarid grasslands to alkali deserts. The state is also home to major tourist attractions like the Hoover Dam, Death Valley, the Sierra Nevada mountains, and Lake Tahoe. 

Most of Nevada is sparsely settled, except for in major hubs like Las Vegas and Reno. In fact, half the population of Nevada lives in the Las Vegas metropolitan area alone. Due to the state’s conditions and ample unsettled space, Nevada’s economy has traditionally been centered on mining and agriculture. Now, however, Nevada’s economy is mainly dominated by government, manufacturing, and tourism. Four fifths of Nevada’s land is owned by the federal government and used for research and development purposes (aerospace, civil defense, etc.). 

When it comes to the housing market, high home prices persist across the state and continue to increase, with Las Vegas as a vital Southwest hub. Household incomes in Nevada would need to surpass $100,000 for residents to afford housing as they could previously. Part of the reason for this housing spike is due to mass migration to Sunbelt during the pandemic, especially from California. Seeking respite from skyrocketing prices, Californians have found an affordable alternative in neighboring Nevada, despite increasing prices due to limited inventory across the U.S. 

Fortunately for would-be homeowners in Nevada, the state’s overall housing market is more balanced. Some competitive markets might favor sellers more, but in other markets affordability is much better. This could signal a market shift towards buyers, but this remains to be seen in the remainder of 2024. 

Nevada Housing Market Trends 

To understand the Nevada real estate market, it’s important to keep up with trends. Let’s look at some key ones in Nevada: 

Note: These statistics are based on Redfin’s monthly housing data from April 2024. 

Median Home Price 

The median sale price of a home in Nevada is $458,400, up 7.1% since this time last year according to Redfin’s monthly housing data from April 2024. However, it’s helpful to keep in mind that prices in Nevada can vary quite widely depending on whether you’re looking at rural homes in sparsely populated smaller towns or homes in more urban or expensive areas. For example, the median price for a home in Glenbrook is $2,745,120. 

Number of Homes Sold in April 2024 

4,134 homes sold in Nevada in April of 2024, up 1.7% year-over-year according to the Redfin dataset. This metric gives us a good picture of the current sales volume in Nevada. However, keep in mind that this number might be inflated compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage. 

The current median days-on-market (DOM) in Nevada is 37 days. This means on average, homes in Nevada take over a month to become pending sales, indicating a less competitive market overall. 

New Supply Statistics 

Housing supply in Nevada is increasing, which could lead to more housing opportunities and ease the financial burden of renters and homeowners in the state. On average, there were about 7.44 new residential construction permits per 1,000 people in Nevada in 2021. Nevada is one of the states with more new housing supply in recent years, suggesting more availability of homes and an ease in prices could be coming to break up the seller’s market. 

Property Tax Rate 

The average property tax rate in Nevada is 0.59%, according to Rocket Mortgage. This places Nevada’s average property tax rate as the 9th lowest in the U.S. However, keep in mind that property taxes vary widely depending on the specific county of Nevada and the value of the home. 

Foreclosure Rate in Q1 of 2024 

In the first quarter of 2024, 1 in every 961 homes experienced a foreclosure filing (according to recent data from ATTOM). Based on this data, Nevada’s foreclosure rate is very high compared to other states. 

Hottest Local Markets in Nevada 

Nevada features some great real estate markets for those interested in buying a home or investing in the Silver State. 

1. Las Vegas

Las Vegas connects major markets like Southern California and Arizona while maintaining modest growth and relative affordability compared to nearby cities like Phoenix and Los Angeles. The city has been, and remains, an active market experiencing a supply shortage, as well as post-pandemic market stabilization. It’s also a popular destination for intraregional migrants, with 70,000 people choosing to move to Southern Nevada from 2021 to 2022. The current median home price in Las Vegas is $440K, with homes staying on the market 34 days on average, indicating that Las Vegas housing is in demand while not overwhelmingly competitive. 

2. Reno

Reno is another popular Nevadan destination, known for its proximity to major geographic sites like Lake Tahoe, mountainous skiing opportunities, as well as its casino gambling industry. Reno’s median home sale price is much higher than Las Vegas’s at $579,500 in April of 2024. Homes in Reno maintain consistent demand and job growth. Despite being smaller in size than nearby cities, Reno reflects the behavior of an expanding urban hub just as much. 

3. Boulder City

Boulder City is known for its proximity to the Hoover Dam and its vibrant downtown culture. Both demand and prices for housing are high in Boulder City, which currently (as of April 2024) has a median home sales price of $410K.  

Economic Factors Impacting the Nevada Housing Market 

A holistic view of Nevada’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

High mortgage rates are a continuing challenge for would-be homeowners in the U.S. Nevada’s average rates for 30-year mortgages in June of 2024 are about the same as the national average, 7.25%. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners report feeling “locked in” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one on their next property. Prospective buyers in Nevada should monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Nevada. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. 

Population Changes and Demographics 

Employment growth, migration, and other demographic trends each impact the housing market of an area. In Nevada, increased migration from neighboring California and other states seeking sun and affordability has led to an increase in demand and prices.  

As new job seekers and homeowners enter the Nevada market, rents are also affected. A recent study found that a 9% increase in population due to migration correlated with an 8-11% increase in rents, applying to many U.S. housing markets. There seems to be a strong correlation between migration and housing prices especially for climate-related migration, which could certainly continue to be the case for Nevada. 

Nevada Housing Market Forecast 

In the remainder of the year, Nevada’s housing market is likely to remain competitive as prices, migration, and demand all continue to increase. Housing market predictions for Nevada are generally positive, with many analysts predicting continued growth for the market. Cities like Las Vegas and Reno will continue to see year-over-year growth and uninterrupted demand. Residents and prospective homeowners will continue to monitor high interest rates throughout the rest of the coming year, which may indicate whether Nevada’s relatively balanced market turns to favor either buyers or sellers. 

Likelihood of Nevada Housing Market Crash  

A housing market crash in Nevada is unlikely. Affordability and in-migration from neighboring California are a sign that demand for homes in Nevada is unlikely to decrease anytime soon, let alone cause inventory inflation as substantial as that seen in 2008. For now, Nevada homeowners can rest assured that continued heightened demand and prices will fuel and support the state’s housing market. 

Forecast for The U.S. Housing Market 

Now that we’ve looked at Nevada’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States’s current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9. 

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.  

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get. 

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth. 

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.  

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.  

Nevada Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.  

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.  

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

This short summary leads directly into Nevada’s current rental market, with key trends below from Zillow: 

Nevada Rental Market Key Trends 

• Median rent: $2,055 

• Month-over-month rent change: -$20 

• Year-over-year rent change: -$20 

• Available rentals: 3,739 

Conclusion 

The Nevada housing market in 2024 is marked by a blend of stability and growth, making it crucial for potential buyers and sellers to stay informed about market trends. Whether you’re looking to purchase a home soon or sell your property in Nevada, the macro- and micro- economic trends outlined above will affect your decision-making. Market dynamics like changes in home prices, inventory levels, and interest rates will continue to be critical for stakeholders in Nevada real estate.