Viva Las Vegas! 2023 seems to be a pretty exciting year for real estate investing. But is it worth investing in the Las Vegas real estate market?
We’re all aware of the lure of Las Vegas. It is a pretty attractive place to live and visit. It is why many beginner real estate investors are considering investing in a Las Vegas real estate property. But hold your horses. Things aren’t always what they seem when Las Vegas real estate is concerned.
Table of Contents
- 5 Best Neighborhoods in the Las Vegas Real Estate Market for Long Term Rental Investment
- 5 Best Neighborhoods in Las Vegas Real Estate Market for Short Term Rental Investment
- What to Expect from the Las Vegas Real Estate Market in 2023
- How to Find Profitable Investment Properties in Las Vegas
Some neighborhoods in the Las Vegas real estate market naturally perform better for rental properties than others. It is a universal truth in any real estate market in the US. But there are good reasons why you should consider investing in a Las Vegas residential real estate property. And by consider, we mean give careful thought to.
If you’re looking for investment properties to turn into long term rentals, the Las Vegas real estate market may be a good place for you. However, if you plan on investing in vacation rental properties, then it gets trickier. Short term rentals are legal in Las Vegas, but they are strictly regulated.
If you want to have a better chance of finding a profitable Las Vegas investment property, keep reading to see our forecasts and predictions. Check out also our list of the best places to invest in Las Vegas in 2023.
Related: 40 Best Places for Buying Investment Property in 2023
5 Best Neighborhoods in the Las Vegas Real Estate Market for Long Term Rental Investment in 2023
Investing in rental properties can be very rewarding, provided you’re in the right location. Unless the market crashes, that is. But experts’ forecasts and predictions for 2023 say a housing market crash is very unlikely. It is why you need to do your homework first before investing in real estate.
The great thing about modern real estate investing is that many online real estate platforms are easily accessible to give you the information you need about potential investment locations. One such platform is Mashvisor.
Using data from Mashvisor’s investment property calculator, we will tell you where to find the highest forecasted returns for rental properties in the Las Vegas real estate market in 2023.
The type of real estate data our tools generate provides key indications of performance for both long term and short term rental properties, along with general market trends, predictions, and conditions. This type of data allows you to forecast the amount of return you can get on a Las Vegas investment property.
According to Mashvisor’s December 2022 database, here are the top Las Vegas neighborhoods that will give you a good return on your investment in 2023.
The following list was filtered to show only markets with—
- At least a hundred active long term rental listings
- A minimum of $2,000 in monthly rental income
- A cash on cash return of no less than 2.00%
The locations are ranked from those with the highest to the lowest cash on cash return.
1. Downtown
- Median Property Price: $484,678
- Average Price per Square Foot: $385
- Days on Market: 90
- Number of Long Term Rental Listings: 132
- Monthly Long Term Rental Income: $2,519
- Long Term Rental Cash on Cash Return: 3.78%
- Long Term Rental Cap Rate: 3.84%
- Price to Rent Ratio: 16
- Walk Score: 86
2. Buffalo
- Median Property Price: $524,875
- Average Price per Square Foot: $255
- Days on Market: 98
- Number of Long Term Rental Listings: 312
- Monthly Long Term Rental Income: $2,323
- Long Term Rental Cash on Cash Return: 3.56%
- Long Term Rental Cap Rate: 3.61%
- Price to Rent Ratio: 19
- Walk Score: 74
3. Paradise
- Median Property Price: $488,480
- Average Price per Square Foot: $268
- Days on Market: 87
- Number of Long Term Rental Listings: 906
- Monthly Long Term Rental Income: $2,202
- Long Term Rental Cash on Cash Return: 3.33%
- Long Term Rental Cap Rate: 3.38%
- Price to Rent Ratio: 18
- Walk Score: 29
4. Spring Valley
- Median Property Price: $555,422
- Average Price per Square Foot: $284
- Days on Market: 92
- Number of Long Term Rental Listings: 1,544
- Monthly Long Term Rental Income: $2,231
- Long Term Rental Cash on Cash Return: 3.02%
- Long Term Rental Cap Rate: 3.06%
- Price to Rent Ratio: 21
- Walk Score: 7
5. Meadows Village
- Median Property Price: $828,595
- Average Price per Square Foot: $424
- Days on Market: 119
- Number of Long Term Rental Listings: 310
- Monthly Long Term Rental Income: $3,394
- Long Term Rental Cash on Cash Return: 2.59%
- Long Term Rental Cap Rate: 2.62%
- Price to Rent Ratio: 20
- Walk Score: 63
Start looking for the most profitable long term rental properties in Las Vegas with Mashvisor today.
5 Best Neighborhoods in Las Vegas Real Estate Market for Short Term Rental Investment
Owning a short term rental in Las Vegas is a lot trickier because of the various short term rental regulations that abound. Vacation rentals are legal in the city under certain conditions, which are strictly enforced.
The Las Vegas government requires vacation rentals to meet the following:
- Must be owner-occupied
- Should have a maximum of three bedrooms
- Must be at least 660 feet apart from another vacation rental property
- Compliant with licensing, noise, and parking regulations
No waivers, deviations, or special treatments will be granted to anyone wishing to start a short term rental business in Las Vegas. That being said, here are the five best neighborhoods in Las Vegas that will give you a good return on investment as long as you comply with the city requirements.
The data for this list was also taken from Mashvisor’s December 2022 location report. This list was filtered to reflect only areas that have a minimum rental income of $2,000 and cash on cash return of 2.00% and above. The neighborhoods are ranked from highest to lowest cash on cash return on short term rental properties:
Related: The Best Real Estate Investing Tips for Choosing a Top Location
1. West Las Vegas
- Median Property Price: $365,021
- Average Price per Square Foot: $244
- Days on Market: 85
- Number of Short Term Rental Listings: 157
- Monthly Short Term Rental Income: $3,249
- Short Term Rental Cash on Cash Return: 6.34%
- Short Term Rental Cap Rate: 6.44%
- Short Term Rental Daily Rate: $187
- Short Term Rental Occupancy Rate: 46%
- Walk Score: 30
2. Downtown East
- Median Property Price: $358,012
- Average Price per Square Foot: $412
- Days on Market: 100
- Number of Short Term Rental Listings: 241
- Monthly Short Term Rental Income: $3,114
- Short Term Rental Cash on Cash Return: 6.07%
- Short Term Rental Cap Rate: 6.16%
- Short Term Rental Daily Rate: $156
- Short Term Rental Occupancy Rate: 47%
- Walk Score: 72
3. Huntridge
- Median Property Price: $423,789
- Average Price per Square Foot: $257
- Days on Market: 75
- Number of Short Term Rental Listings: 451
- Monthly Short Term Rental Income: $3,537
- Short Term Rental Cash on Cash Return: 5.77%
- Short Term Rental Cap Rate: 5.85%
- Short Term Rental Daily Rate: $192
- Short Term Rental Occupancy Rate: 48%
- Walk Score: 54
4. Winchester
- Median Property Price: $380,549
- Average Price per Square Foot: $218
- Days on Market: 108
- Number of Short Term Rental Listings: 466
- Monthly Short Term Rental Income: $3,235
- Short Term Rental Cash on Cash Return: 5.31%
- Short Term Rental Cap Rate: 5.39%
- Short Term Rental Daily Rate: $221
- Short Term Rental Occupancy Rate: 48%
- Walk Score: 54
5. Rancho Charleston
- Median Property Price: $418,380
- Average Price per Square Foot: $240
- Days on Market: 84
- Number of Short Term Rental Listings: 306
- Monthly Short Term Rental Income: $3,241
- Short Term Rental Cash on Cash Return: 5.18%
- Short Term Rental Cap Rate: 5.25%
- Short Term Rental Daily Rate: $222
- Short Term Rental Occupancy Rate: 46%
- Walk Score: 39
Go to Mashvisor now to start looking for and analyzing the most profitable short term rental properties in any location of your choice in Las Vegas.
What to Expect from the Las Vegas Real Estate Market in 2023
If you’re going to become a Las Vegas real estate investor, you should also learn about the current market trends and conditions as well as forecasts and predictions. As a real estate investor, it is important to know the trends, forecasts, and predictions as they can help you determine whether a certain market is good for investing or if it’s headed for a crash.
The trends and predictions will give you a better outlook on a specific residential real estate market, which will, in turn, help you make wiser investment decisions.
With the way things are going in real estate now, there’s been a lot of talk about how a housing market crash is coming. To boost your confidence as an investor, you should keep yourself updated with the latest news about the market you’re considering. It pays to tune in to forecasts and predictions since most of these outlooks are based on numbers and statistics.
Now that we’ve entered 2023, many forecasts and predictions abound that will help you see if a housing market crash is looming or not. Paying attention to such predictions and reports will give you a better idea of how a certain market will perform in 2023. In this case, we’re talking about the Las Vegas residential market.
Las Vegas by the Numbers
We combed through Mashvisor’s December 2022 data to give you the information you need as a prospective rental property investor in Las Vegas. Our data will allow you to make a more realistic and accurate investment property analysis for the Las Vegas residential real estate market.
Here are the city-level averages so that you get an idea of the general performance of Las Vegas real estate investments.
- Median Property Price: $531,225
- Average Price per Square Foot: $283
- Days on Market: 87
- Number of Long Term Rental Listings: 10,574
- Monthly Long Term Rental Income: $1,898
- Long Term Rental Cash on Cash Return: 2.52%
- Long Term Rental Cap Rate: 2.55%
- Price to Rent Ratio: 23
- Number of Short Term Rental Listings: 2,931
- Monthly Short Term Rental Income: $2,920
- Short Term Rental Cash on Cash Return: 3.37%
- Short Term Rental Cap Rate: 3.42%
- Short Term Rental Daily Rate: $209
- Short Term Rental Occupancy Rate: 48%
- Walk Score: 34
In addition to the return on investment (ROI) numbers listed above, there are a few more important things to keep in mind when investing in the Las Vegas real estate market. Let’s look at some of the trends and predictions industry experts believe will happen in the Las Vegas market in 2023.
The Las Vegas Market Is Moving Toward Stability
You won’t experience a difficult time finding Las Vegas houses for sale as the housing supply is up and trends are in the buyer’s favor. In our database alone, there are 5,356 listings of income properties for sale in the Las Vegas real estate market currently.
In the past couple of years, we saw the Las Vegas real estate market as a red-hot seller’s market. Some 53% of closings in November 2022 were on the market for more than 30 days.
The said trend is about to change as forecasts point to a market movement in favor of buyers in 2023. The current market trends and conditions indicate a movement toward stability, giving buyers the power to negotiate with sellers.
Presently, more properties are becoming available in the Las Vegas real estate market. There is now a 4.8-month supply in the Southern Nevada area, including Las Vegas. A market with less than six months’ supply is favorable for sellers, while those with more than six months’ worth of inventory is a win for buyers.
Predictions and forecasts about stability in the Las Vegas real estate market are bringing a lot of optimism to real estate investors. 2023 might be a good time to invest in Las Vegas, especially if you’re looking to start a rental property business.
The Market Cooldown Will Continue
Now that the US real estate market is cooling down, including the Las Vegas market, many experts and analysts are making bold predictions and forecasts that property prices in Las Vegas will go down in the near future.
A cool market doesn’t mean home values in the Las Vegas real estate market will come to a halt. Las Vegas real estate properties depreciated for the sixth consecutive month in November 2022. The median property price for a Las Vegas property fell by 2% from October 2022. The median home value is currently $531,225 in the Las Vegas market.
However, the current rate is still up 2.6% year-over-year. The prevailing market conditions and trends, as well as experts’ forecasts and predictions, indicate that Las Vegas real estate prices will continue to go up, albeit at a slower pace. It puts Las Vegas in a pretty good place as far as appreciation is concerned.
As an investor, you should take advantage of the current market cool-down and search for a good deal now before the housing market picks back up again.
Related: How to Choose the Best Location for Investment Property
There’s a Wide Renter Pool
The population in Las Vegas, specifically, rose from 646,790 in 2021 to 661,609 in 2022. Renters comprise almost half of the Las Vegas real estate market.
With the population, as a whole, gradually increasing in Nevada, real estate investors can be comforted by the growth. It means more demand for housing, which they can provide by investing in long term rental properties.
Currently, the price to rent ratio on the Las Vegas real estate market is a high 23. A score of 20 and up means that homeownership is expensive, and renting a house is the more practical option for people. It is no news that Las Vegas real estate properties are expensive.
Given the current trends and conditions of housing affordability in Las Vegas, rental properties will continue to be in high demand in 2023. So, no, a market crash is highly unlikely to take place in Las Vegas.
Unemployment Will Continue to Go Down
The Las Vegas unemployment rate’s been higher than the national average for a while now. And yes, it still is above the national average, but it‘s gotten better and is continuing to steadily improve.
It’s been slowly declining since 2011, with the local economy continuing to gain jobs. In the last quarter of 2022, Las Vegas employment went up by 55,000 jobs, giving residents plenty of job opportunities. A healthy job market entails an improving economy. And an improving economy is welcome news for real estate investors as it indicates a strong housing market.
The State Laws Are on the Side of Landlords
We‘ve already discussed how strict Las Vegas is when it comes to short term rental properties. However, the Las Vegas real estate market is an excellent place for investing in long term rentals as it is a landlord-friendly place. If you face troublesome tenants constantly missing their rent payments, state law makes the eviction process easy.
Generally, such tenants are given five days from the date the rent was due before landlords can begin the eviction process. Landlords are not obligated to pay interest on deposits, and there are no limits on late fees.
Another great thing investors would love to hear is there is no state income tax in Nevada. Property tax rates are pretty low, too, averaging at just around 1%.
Related: Study Reveals What Renters Want: A Must-Read for Landlords
How to Find Profitable Investment Properties in Las Vegas
Taking into consideration all the forecasts and predictions, as well as the information and data we’ve discussed, is it possible to find a good deal in Las Vegas real estate in 2023?
Investing in real estate properties in Las Vegas can be a lucrative venture for you in 2023. Based on experts’ predictions and forecasts from experts, no housing market crash will take place. The right investment strategy will give you a good ROI and monthly cash flow.
Finding the right property is the main concern when it comes to real estate investing. The good news is that Las Vegas is filled with a lot of excellent investment opportunities. You just need to know where to look for them.
If you take into account the numbers, you should find a neighborhood that will meet your real estate investing needs. To get high-quality numbers, you must utilize the right data source and tools so you can come up with a proper rental property analysis.
Investing With Mashvisor
If you’re ready to invest, why waste any more time? With Mashvisor, you can conduct a full property search in just 15 minutes. We provide multiple search and investment analysis tools that our users can benefit from when looking for profitable real estate investments.
You can use helpful tools like our Property Finder and real estate heatmap to locate prospective investment properties currently listed for sale in the Las Vegas real estate market. Our investment property calculator will help you determine whether a particular property is profitable or not.
Our database is massive and covers nearly every real estate market in the country. We get our data from highly reliable sources like Zillow, Realtor.com, the MLS, and Airbnb to give you only high-quality data. We regularly update our database so you can come up with the most relevant and realistic calculations.
Get started on your 7-day free trial with Mashvisor today.
Wrapping It Up
Investing in the Las Vegas real estate market in 2023 looks to be a very promising move for real estate investors. It is a great place for aspiring landlords to buy properties in. And although it is a bit strict when it comes to vacation rentals, Las Vegas can be a good location for short term rental property investments, provided you do things right.
As an investor, it is always recommended you keep your eyes peeled for current market trends and updates. It’s no different for those of you considering buying properties in Las Vegas. By being updated with market conditions, as well as forecasts, you are ridding yourself of any paranoia about housing market crashes and other similar concerns.
But the most important thing about investing in Las Vegas real estate is you’re doing it with the right investment tools. Mashvisor can help you make the right investment decisions, given its proven track record of helping countless other investors in the past.
Learn more about how Mashvisor can help you find the best deals in the most profitable markets by scheduling a demo now.