LAS VEGAS (KSNV) — Las Vegas has been hit hard with high unemployment numbers this year, but through all the apocalyptic insanity that came with 2020, area home prices are up nearly 8% in August.
The average price of a home in the Las Vegas metro area grew 7.8% year over year to $310,000 in August, according to Redfin.
But why is this happening amidst such economic pressure?
“A lot of sellers are asking me the same question: How is my neighbor’s house going under contract in two days, but I pick up the local newspaper and it’s all doom and gloom for the economy?” said Las Vegas Redfin agent Shay Stein, adding, “It’s because there’s so much more demand than supply, driven by two groups: People coming from high-priced places like California, Hawaii and New York who can suddenly work from home, and locals whose needs have changed due to the pandemic.”
Now that workers don't have to roll into an office every day, people who once were forced to commute to their jobs in places like San Francisco and New York, no longer need their high rent homes. So they're looking at less expensive places, like Las Vegas.
“I helped a New York couple who sold their home for $1.9 million, bought a larger home here for $475,000 and pocketed the remaining equity. Plus, their property taxes went from $23,000 per year to $2,500," said Las Vegas Redfin agent Patrick Thomas.
The influx of new residents may also change the political landscape of the state.
“The wave of migration could also impact the area’s politics. Some of the people coming from big coastal cities are fleeing liberal business and tax policies for a place more in line with their views, and some are strict Democrats who are moving for other reasons. It will be interesting to see if it results in a more conservative or a more liberal Nevada," Thomas said.
by Mat Luschek