2021 Las Vegas Real Estate Market Investing Forecast
Las Vegas is known for its entertainment, casinos, and resorts, but the region’s economy has slowly diversified as businesses move to Las Vegas due to the lower cost of living, predictable weather, and business-friendly tax laws.
Games and hospitality. People from all over the world travel to the many casinos and resorts in Las Vegas, and this industry is the lifeblood of the local economy. Some of the largest employers in this group are MGM Resort International (NYSE: MGM), Caesars Entertainment (NASDAQ: CZR), and Wynn Resorts (NASDAQ: WYNN).
Technology. Las Vegas has grown in popularity in the tech space in recent years as a mix of large corporations and startups have decided to move to the area. Notable tech companies in the area include Zappos (in downtown Las Vegas), GoWireless, and Google (NASDAQ: togetL), which now has two $ 600 million data centers in Henderson, NV.
Military. Nellis Air Force Base was founded in 1941 as the Las Vegas Army airfield and is now one of the largest employers in southern Nevada with around 9,500 employees, including military and civilians. Nellis Air Force Base is about eight miles northeast of Las Vegas.
Health care. Las Vegas has multiple hospitals and medical facilities, making healthcare a popular industry. Dignity Health owns several facilities in Las Vegas including four St. Rose hospitals and several other specialized facilities. Another company, Valley Health Systems, owns six hospitals in Las Vegas and employs 6,500 residents.
Las Vegas has a number of public and private colleges across the region with growing numbers of students.
University of Nevada, Las Vegas
The University of Nevada, Las Vegas is located just 1.6 miles east of the Las Vegas Strip on 332 acre campus. In autumn 2020, over 31,000 students were enrolled at the school.
Nevada State College
Nevada State College is a growing school in Henderson, Nevada. Enrollment for the fall of 2019 was 5,578, an increase of over 57% compared to just five years earlier.
College of Southern Nevada
As the largest college in Nevada, the College of Southern Nevada has three locations: Henderson, North Las Vegas, and Las Vegas. Over 31,000 part-time and full-time students are enrolled at this school between the three locations.
There are also several smaller schools with health programs in Las Vegas. Some of these are the Roseman University of Health Sciences, the Pima Medical Institute, and the Chamberlain University College of Nursing.
Las Vegas has a variety of neighborhoods, each with different property values. This leaves investors with plenty of options, whether they want to build new single family homes in some of the growing communities or buy existing apartment buildings in some of the more established neighborhoods in the area.
Summerlin is a master-planned church developed in 1990 by Howard Hughes Corporation (NYSE: HHC). The community is located partially in the city of Las Vegas and on the northwest side of the Las Vegas Valley. Summerlin has its own downtown area, shopping districts, and parks, and is even home to the Red Rock Canyon National Conservation Area.
Summerlin is divided into villages, each with several subdivisions. Some of the most popular villages in Summerlin:
- The arbors
- The outlook
- The willows
- Summerlin Center
- The walks
Henderson is a separate city southeast of the city of Las Vegas and one of the most famous suburbs in the region. Henderson is home to the University of Nevada in Las Vegas and borders two of the area’s most popular national parks: Sloan Canyon and Lake Mead. Henderson is also known as one of the safest cities in the country. House values in Henderson tend to be higher than those within the Las Vegas city limits.
Some of the most notable neighborhoods in Henderson:
- Green valley
- River mountain
- Macdonald Ranch
- Valley view
North Las Vegas
North Las Vegas is a city directly north of Las Vegas. It is best known for its main attraction, the Las Vegas Motor Speedway. It is also right next to Nellis Air Force Base and is home to many military families.
North Las Vegas is divided into three neighborhoods:
- Upper Las Vegas
- Vegas Heights
- When neighborhood
Downtown Las Vegas
Downtown Las Vegas is considered by locals to be the heart of the city, home to popular Fremont Street and the burgeoning Art District. This was the main gambling district off the Strip and is still a popular destination for both locals and tourists. Since Downtown is the oldest neighborhood in Las Vegas, many houses were built before 1960. Due to the age of many homes, downtown property prices and rents are cheaper than many other areas of Las Vegas.
Charleston Heights is located on the west side of Las Vegas and is home to one of the three campuses of the College of Southern Nevada. Charleston is an older neighborhood where most of the homes were built in the 1960s and 1970s. This means that the average home price in Charleston Heights is lower than many newer neighborhoods.
The bottom line of Millionacres
Las Vegas offers many opportunities for investors. There is a growing population, an increase in new businesses and a strong demand for rental properties. However, it is important to recognize that this growth still depends on the return of key industries in the region. The city has survived the temporary closings of casinos and resorts, but if further complications delay its recovery, it could have lasting effects on the local economy.
Investors should also be careful when choosing which Las Vegas areas to invest in. The newer neighborhoods have a high entry price, making it difficult for investors to get a return on their investment. In older parts of the city, on the other hand, property values could fall if money is not continuously invested in them.
Investors interested in Las Vegas should closely monitor the recovery of the gaming and hospitality industries and be confident that these companies will thrive again before venturing into the Las Vegas real estate market.