Las Vegas Real Estate Market Report 2020

Las Vegas Overview

Las Vegas is named The Entertainment Capital of the World for a reason. Vegas is an internationally famous resort city with endless entertainment opportunities including gambling, nightlife, shopping, and dining.

The Las Vegas population of more than 648 thousand residents makes it the largest city in the State of Nevada and the Mojave Desert as well as the 28th most populous city in the US housing market. Meanwhile, the Las Vegas Valley metropolitan area is home to over 2.2 million people. Throughout the 20th century, Sin City experienced the highest population growth among recently founded cities, and this trend is continuing in the 21st century. The strong population growth means that demand in the residential Las Vegas real estate market will continue rising in 2020 and the coming years, which is good news for local and out of state real estate investors.

The main economic sector in Las Vegas is tourism. In 2018 more than 41.2 million local and foreign tourists visited Vegas, making it the 7th most popular tourist destination in all of the US in addition to the 3rd most popular US city for international tourists. The status of The Entertainment Capital of the World is what attracts so many visitors to Las Vegas who are in search of unlimited entertainment opportunities, especially gambling.

Sin City is packed with mega casinos and hotels with more AAA Five Diamond hotels than any other location around the globe. It comes as no surprise that Vegas is a world leader in the hospitality industry. In specific, the Las Vegas Strip, a 4.2-mile long area south of the City of Las Vegas limits, is famous worldwide for its high concentration of magnificent casinos, resort hotels, and resort properties. Moreover, it is among the 3 most popular destinations for business conventions in the US.

The economic growth of Las Vegas has been fueled by tourism, gaming, hospitality, and conventions. Real estate development has also been a major economic activity, driven by the ever-increasing demand for resorts and hotels. The Las Vegas real estate market has been growing at an unprecedented pace to catch up with demand from investors. While there are some other industries in Sin City, their impact is insignificant on the overall city performance. However, the gambling industry and tourism show no signs of slowing down any time soon, so real estate investors should not worry about buying rental properties in Las Vegas.

A crucially important part of the hospitality business in Las Vegas has been the rise of the Airbnb Las Vegas industry. In 2018 alone the number of stays at Las Vegas vacation rentals increased by 50%. Las Vegas Airbnb hosts generated a total revenue of $100 million. The growth of the Las Vegas short term rentals industry has been one of the fastest not only in the US housing market but also globally due to the constant influx of tourists and business travelers year-round.

Investing in Las Vegas homes for sale promises to be a profitable real estate investing strategy in 2020. If you are thinking about buying a rental property in the Las Vegas housing market in 2020, you should start your real estate market analysis and research soon in order to choose the best location and the best investment property before other investors. Make sure to have the right real estate investment tools by your side to make money-making investing decisions.

Las Vegas Real Estate Market 2020 Overview

Median Property Price: $383,900
Average Price per Square Foot: $202
Real Estate Appreciation: 94% since 2000 (close to the average Nevada real estate appreciation rate and above the US average)
Days on Market: 80
Listings for Sale: 5,935
Price to Rent Ratio: 23 (high)
Buyer’s Market or Seller’s Market: A buyer’s market
Renters’ Percent of Population: 49%

In 2020 the Las Vegas real estate market is forecast to retain its position as one of the best places to invest in real estate not only in the US but also globally. The PwC report Emerging Trends in Real Estate: United States and Canada 2020 ranks Sin City as #46 among the US Markets to Watch for Overall Real Estate Prospects. However, it is also positioned at #15 in local sentiment for real estate development and redevelopment opportunities and #19 for homebuilding prospects which are much more important and encouraging indicators for residential real estate investors. This means that investors will have sufficient income properties for sale to choose from, so there will be no pressure to compete with other more experienced real estate investors or home buyers. Furthermore, the publication highlights that investor demand is expected to be high in the Las Vegas housing market in 2020. Rebounding is also expected to continue as in 2016-2018 Vegas caught 1.4% of all US real estate investment capital, while it is home to only half of this share of the population. This should not surprise investors taking into consideration the status of Sin City as one of the hottest tourist destinations in all of the US in the last few decades.

In spite of being one of the best places to invest in real estate in 2020, Las Vegas offers reasonable property prices to investors and other property buyers. The median listing price of homes for sale in Las Vegas amounts to $383,900, which is only 65% more than the national median value of $232,000. This makes The Entertainment Capital of the World one of the most affordable US housing markets for investing in real estate in 2020. The Las Vegas real estate prices are significantly lower than the prices in other top locations such as New York ($1,128,000), San Francisco ($1,649,900), Los Angeles ($1,069,400), Boston ($875,500), and San Diego ($813,500). This makes for an ideal location for beginner real estate investors who face limited financing opportunities when buying rental properties.

Speaking of property prices, the Las Vegas real estate market has experienced excellent appreciation in the last couple of decades. Between Q1 2000 and Q3 2019 the prices of Las Vegas homes for sale increased by an average rate of 3.5% per year. This real estate appreciation rate is comparable to the Nevada rate but stands considerably above the US-wide average. According to Zillow, Las Vegas real estate prices went up by 0.8% last year, but appreciation is expected to pick up and reach 2.6% in 2020. This is a very positive sign for all real estate investors interested in buying Las Vegas rental properties as it means a good long term return on investment. At the same time, prices in Vegas are not expected to raise to an extent which will make them unaffordable for investors with little cash and not many other financing options.

Another Las Vegas real estate trend favoring new investors is the fact that Sin City is and will continue to be a buyer’s market in 2020. The days on market have been relatively high at an average of 80, and there is a rich inventory of Las Vegas homes for sale. The expected moderate appreciation is also pointing towards this direction. The status of a buyer’s market – or a cold market – is particularly important for beginner real estate investors who don’t have enough practical experience to compete with fierce expert investors and motivated home buyers. Moreover, hiring one of the top Las Vegas real estate agents can further facilitate the process of buying an investment property for beginners.

If you are thinking of investing in rental properties in the Las Vegas housing market, it is important to know that rental demand is high for both strategies: traditional and Airbnb Las Vegas. Nearly half (49%) of the Las Vegas population rents rather than owns a home, which means that there are a total of nearly 1.1 million potential tenants in the metro area. The high price to rent ratio of 23 expected to remain relatively unchanged in 2020 confirms that Las Vegas residents will continue to choose to rent rather than buy a home as this makes more sense from a financial point of view. However, the price to rent ratio in the Las Vegas is not high enough to prevent profitable real estate investments in the form of income properties. Meanwhile, the millions of leisure tourists and business travelers who come to Sin City throughout the year guarantee a high demand for Las Vegas vacation rentals as well. From real estate investors’ point of view, strong rental demand is one of the most important factors for achieving a high return on investment on income properties.

With almost 6,000 Las Vegas real estate listings and an affordable median property price, investors can find a rental property for sale within their budget which meets all their search criteria such as location, property type, number of bedrooms and bathrooms, and – of course – rate of return. Using the best real estate investment tools for 2020 makes this search process much faster and easier, assuring a positive cash flow property from the beginning.

Best Property Types for Investing in the Las Vegas Real Estate Market

Single Family Homes for Sale in Las Vegas: 4,097
- Median Property Price: $412,500
- Average Price per Square Foot: $186
- Average Monthly Traditional Rental Income: $1,460
- Average Traditional Cap Rate: 1.4%
- Average Monthly Airbnb Rental Income: $3,410
- Average Airbnb Cap Rate: 5.9%
Condos for Sale in Las Vegas: 1,313
- Median Property Price: $347,800
- Average Price per Square Foot: $268
- Average Monthly Traditional Rental Income: $1,240
- Average Traditional Cap Rate: 2.3%
- Average Monthly Airbnb Rental Income: $2,610
- Average Airbnb Cap Rate: 6.7%
Townhouses for Sale in Las Vegas: 457
- Median Property Price: $225,100
- Average Price per Square Foot: $162
- Average Monthly Traditional Rental Income: $1,110
- Average Traditional Cap Rate: 2.0%
- Average Monthly Airbnb Rental Income: $2,880
- Average Airbnb Cap Rate: 7.7%
Multi Family Homes for Sale in Las Vegas: 56
- Median Property Price: $407,700
- Average Price per Square Foot: $180
- Average Monthly Traditional Rental Income: $1,550
- Average Traditional Cap Rate: 1.2%
- Average Monthly Airbnb Rental Income: N/A
- Average Airbnb Cap Rate: N/A
Foreclosed Homes for Sale in Las Vegas: 179
- Median Property Price: $301,100
- Average Price per Square Foot: $155
- Average Monthly Traditional Rental Income: $1,370
- Average Traditional Cap Rate: 2.0%
- Average Monthly Airbnb Rental Income: $3,050
- Average Airbnb Cap Rate: 7.6%

As the data in this Las Vegas real estate market report 2020 shows, real estate investors can choose from different property types for sale in Sin City. However, similar to other best places to invest in real estate, the vast majority of Las Vegas real estate listings consists of single family homes. Nevertheless, there are also over 1,300 condos for sale as well as some townhouses and multi family homes. Investors looking for an easy way to push up their short term and long term return on investment can also buy one of the Las Vegas foreclosures for sale.

Why Investing in Single Family Homes in Las Vegas

Single family homes for sale in Las Vegas make up for the most numerous property type in Sin City at the moment, and this trend is expected to continue in 2020. As many as 69% of all Las Vegas real estate listings are single family homes. Although they sell for a bit above the median property price in the local housing market, single family homes are an excellent strategy for beginner real estate investors. They are relatively easy to maintain and manage, they attract good tenants, and they appreciate well over time. Having good tenants such as young professionals and small families is crucially important for being a landlord in any real estate market as it will not only eliminate the headaches but also bring down your rental expenses and push up your return on investment. All in all, single family homes in Las Vegas bring a good rate of return on a rental property, regardless of the rental strategy.

Why Investing in Condos in Las Vegas

Real estate investors can choose from as many as 1,313 condos for sale in Las Vegas, Nevada, which allows them to find an investment property for sale which matches all their expectations such as price, rental income, cash flow, cap rate, and cash on cash return. Importantly for new investors, condos are listed for below the median property price in the Las Vegas real estate market, mostly because they run smaller than single family homes and townhouses. Las Vegas real estate data shows that their price per square foot is actually the highest among all property types due to the more amenities and features which they come with. Condos for sale in Las Vegas, NV offer above-average return on investment as both short term rental properties and long term rentals. However, before deciding to buy a condo to rent out, an investor should check out the rules of the homeowners association as many HOAs limit the number and type of rentals allowed to be operated in their buildings.

Why Investing in Townhouses in Las Vegas

If you are looking for cheap houses for sale in Las Vegas for your real estate investing portfolio in 2020, you should consider a townhouse. These properties are listed for only 59% of the median property price in the Las Vegas real estate market at the moment. Furthermore, they provide the highest return on investment in terms of both capitalization rate and CoC return for both rental strategies: traditional Las Vegas rental properties and Airbnb Las Vegas rentals. Investors have as many as 457 townhouses for sale in Las Vegas from which to choose an investment property meeting all their expectations and criteria. As long as they have a Property Finder tool, they can easily select the townhouses which match their budget, preferred rental strategy, and optimal number of bedrooms and bathrooms to see those with the highest cash on cash return.

Why Investing in Multi Family Homes in Las Vegas

If you are looking for a strategy to diversify your real estate investment portfolio in an easy, quick, and efficient manner, you should think about buying one of the multi family homes for sale in Las Vegas. In this way, with the purchase of a single investment property you will gain multiple rental units, providing you with a few different sources of rental income. That’s exactly what makes investing in multi family real estate properties safer than investing in any other residential property type. With multi family homes, it is much less likely to have a 100% vacancy and zero rental income. Moreover, it is easier to finance buying such an investment property with a mortgage as lenders see them as lower risk and are more likely to give you better terms. Additionally, managing several rental units within the same property is much more convenient and efficient if you want to be a landlord or an Airbnb host. Hiring a professional property manager also makes more sense with multi family homes, providing you with a source of passive income in real estate.

Why Investing in Foreclosures in Las Vegas

If after reading this Las Vegas real estate market report to this point and are not sure which property type to go for but are interested in finding cheap houses for sale in Las Vegas, you should look into the foreclosed homes for sale in Las Vegas. Although many refrain from investing in a foreclosure because they think it comes with many complications, foreclosed homes make for excellent investment properties. The main reason is that they sell for only a fraction of the median price in the local US housing market, making them an affordable option even for beginner real estate investors. Moreover, the low sale price allows investors to make more money from real estate in both the short and the long term. Last but not least, foreclosures get listed by very motivated sellers which makes the process of buying them easier and faster. So, even beginner real estate investors should not avoid Las Vegas foreclosures as they can bring them a higher return on investment immediately. If you’re hesitant to get involved with a foreclosure home as someone new to the real estate business, you can always hire one of the best Las Vegas, NV real estate agents to help you out.

Important Stats for Las Vegas Real Estate Investors

Safety in the Houston Real Estate Market

Crime Rate Index: 12 (100 is highest)

Despite its nickname Sin City, Las Vegas is safer than 12% of US cities. Although this sounds like a relatively high crime rate with a total of 37 crimes per 1,000 residents, it is much lower than the crime rate in other top real estate investing markets.

Access in the Las Vegas Real Estate Market

Walk Score: 93
Transit Score: 68
Bike Score: 64

In brief, Las Vegas is a Walker’s Paradise as running daily errands does not require having a car. Sin City is one of the most walkable cities in the entire US housing market. Moreover, the city enjoys many nearby public transportation opportunities and is bikeable. This high walkability and accessibility is an attractive feature for tenants and Las Vegas Airbnb guests.

Affordability in the Las Vegas Real Estate Market

Cost of Living Index (Excluding Rent): 68
Rent Index: 30
Cost of Living Plus Rent Index: 50

The average cost of living in Las Vegas excluding rent is 32% below the average cost of living in New York City. Meanwhile, the rent index in the Las Vegas housing market is 30% below the NYC one. This relatively cheap rent is one of the reasons for the high price to rent ratio and the high demand for traditional Las Vegas investment properties. The cost of living in Las Vegas, Nevada including rent is about half the level in New York.

Las Vegas, Nevada Property Taxes

Nevada Average Effective Property Tax Rate: 0.688% (below the national average of 1.08%)
Clark County Average Effective Property Tax Rate: 0.705% (above the state average but below the national average of 1.08%)
City of Las Vegas Average Effective Property Tax Rate: 0.555% (below the national average of 1.08%, the state average, and the county average)

Nevada property taxes are among the lowest in the US housing market at an effective rate of 0.688%. Moreover, the Nevada property tax abatement law protects homeowners from major increases, capping the allowed annual rise to 3%. Nevada real estate taxes are paid on the assessed value of a home, which is equivalent to 35% of the taxable value. Although the average property tax rate in Clark County exceeds the average state rate, Las Vegas real estate taxes are quite low. Taking into consideration the relatively affordable property prices in the Las Vegas housing market together with the low property tax rate, investors should not worry about this cost too much. Nevertheless, they should still include property tax in their rental expenses calculations to assure positive cash flow from their income properties in Las Vegas.

If, as a real estate investor, you are interested in exploring the real estate investment options in other states with no property tax, you should do research on opportunities in Hawaii, Alabama, Louisiana, West Virginia, and Wyoming. Investing in a place with no property tax allows you to increase your cash flow and return on investment.

Las Vegas Real Estate Market: Traditional Rentals

Average Monthly Traditional Rental Income: $1,380
Average Traditional Cap Rate: 1.7%
Price to Rent Ratio: 23
Renters’ Percent of Population: 49%
Optimal Property Type: Condo or townhouse
Optimal Number of Bedrooms: 1 or 2
Traditional Rental Listings: 12,897
3 Best Neighborhoods in Las Vegas for Buying Traditional Rentals: Meadows Village, Cultural Corridor, and Downtown
3 Worst Neighborhoods in Las Vegas for Long Term Rental Property Investments: Summerlin South, Lone Mountain, and Las Vegas Wash

Investing in traditional Las Vegas rental properties is one of the best real estate strategies for 2020. First of all, the prices of Las Vegas homes for sale are much more affordable than the listing prices in other top places for buying an investment property. Moreover, rental income in Sin City is high enough to provide a good cap rate and a good cash on cash return. Many knowledgeable and experienced investors would argue that a rate of return of 1.7% is too low as a good cap rate should be between 8% and 12%. However, 1.7% is just the city level average return on investment for long term rental properties. Meanwhile, the best Las Vegas neighborhoods for real estate investing offer a significantly better rate of return for this rental strategy. Individual long term rentals in Las Vegas have a double-digit return on investment.

Another factor which investors should consider is the high rental demand expected in the Las Vegas real estate market in 2020. With about half the population renting and with a strong positive population growth, the number of renters in Las Vegas will continue to be on the rise. The high price to rent ratio also supports this Las Vegas real estate trend. Strong rental demand translates into a high occupancy rate and little or no vacancies. This is one of the most important factors for achieving excellent rental income, positive cash flow, and optimal return.

If you are looking for a way to increase your return on investment in the Las Vegas real estate market, you should consider buying one of the foreclosed homes for sale in Las Vegas. As the data in this Las Vegas real estate market 2020 report above reveals, this will help you make your real estate investment even more profitable right away.

To buy a top-performing rental property in Las Vegas, you should conduct careful neighborhood analysis and rental property analysis. For this purpose, you need to have access to a rental property calculator and a Property Finder. To help you narrow down your property search and focus on the most profitable opportunities in Sin City, you should take into consideration the fact that, according to Las Vegas real estate market analysis, condos and townhouses bring the highest return. So do properties with 1 or 2 bedrooms as well.

Landlord-Tenant Law and Regulations in the Las Vegas Real Estate Market

Landlord-tenant relations in Las Vegas are majorly regulated by the Nevada real estate law. Generally speaking, Nevada is a landlord-friendly state, which is one of the leading Las Vegas real estate market trends that investors need to keep in mind in 2020. While the rights of tenants are well protected, landlords tend to have the upper hand in legal terms.

For example, real estate investors are allowed to ask for a security deposit in Las Vegas. Although legally the size of the security deposit cannot exceed 3 months of rent, in practice no landlord ever asks for such a deposit anyway. Moreover, Las Vegas landlords are not required to pay interest on the security deposit. They are, however, required to return it to the renter within 30 days after he/she moves out of the property. Withholds can be made for breaches of the lease, damage to the rental, or cleaning the house.

Leases of more than 12 months need to have a written rental agreement. Even in cases of shorter lease periods, landlords are urged to sign a lease agreement with tenants in order to make sure that their best interest as well as the best interest of their rental property in Las Vegas is protected. Written agreements need to include such details as the duration of the agreement; the amount of rent, the method of payment, and the payment date; deposits and late fees; services included with the rental and payment of utilities; number of tenants; policies related to children and pets; and others.

Furthermore, there is no legal restriction on the amount of late fees in the Nevada real estate market. However, the charge amount should be stated in the written rental agreement. Moreover, late fees can be charged as soon as the rent is late.

Evicting a tenant in Las Vegas is feasible. Eviction can happen as a result of non-payment of rent, purposeful damage to the rental property, or another breach of the lease agreement.

If you are planning to buy a rental property in the Las Vegas real estate market in 2020, you should look into the relevant landlord-tenant laws in even more detail. This is the only way to make sure that you operate your long term rental fully legally and protect the rights of your tenants.

If you would like to consider investing in real estate in other landlord friendly states, you can perform real estate market analysis of locations in Indiana, Colorado, Georgia, Kentucky, and Alabama. As a first-time real estate investor, you should aim to own a rental property in a place where you will face few legal restrictions and no problems.

Best Las Vegas Neighborhoods for Investing in Traditional Rentals

Las Vegas Real Estate Market Report Best Neighborhoods in Las Vegas for Investing in Traditional Rental Properties

1. Meadows Village

Median Property Price: $604,300
Average Price per Square Foot: $312
Average Monthly Traditional Rental Income: $2,360
Average Traditional Cap Rate: 3.1%
Walk Score: 70

Las Vegas real estate market analysis positions the Meadows Village neighborhood as the most profitable location for investing in long term rental properties in Sin City. Although the median property price here exceeds the average Las Vegas real estate prices, the traditional rental income is enough to generate the highest return on investment for the traditional rental strategy. Real estate investors looking for a top-performing investment should consider buying a traditional rental property in Meadows Village in 2020.

2. Cultural Corridor

Median Property Price: $220,700
Average Price per Square Foot: $167
Average Monthly Traditional Rental Income: $1,160
Average Traditional Cap Rate: 2.3%
Walk Score: 59

This Las Vegas real estate market report ranks the Cultural Corridor neighborhood as #2 among the best neighborhoods in Las Vegas for buying rental properties to rent out traditionally in 2020. The area is excellent for attracting tenants as it offers numerous amenities and prices below the average cost of living in Las Vegas. Moreover, Cultural Corridor is also one of the cheapest Las Vegas neighborhoods for residential real estate properties, with a median property price much below the city-wide level. If you’re looking for a profitable real estate investing strategy in 2020, you should about buying an investment property in Cultural Corridor.

3. Downtown

Median Property Price: $458,700
Average Price per Square Foot: $314
Average Monthly Traditional Rental Income: $2,170
Average Traditional Cap Rate: 2.3%
Walk Score: 86

Number 3 among the most profitable neighborhoods in Las Vegas for investing in a traditional rental property in 2020 will be the Downtown neighborhood. Downtown provides real estate investors with the option of choosing from types of homes for sale in Las Vegas to invest in, including single family homes, condos, and townhouses. Even though the property prices in this area are above the median in the Las Vegas real estate market, the rate of return on rental properties is also above the average. Downtown is a vibrant place with many attractions which bring long term tenants. It is also one of the most walkable Las Vegas neighborhoods. For making money in real estate in 2020, you should explore the opportunities for investing in real estate in Downtown Las Vegas closely.

4. The Strip

Median Property Price: $500,300
Average Price per Square Foot: $417
Average Monthly Traditional Rental Income: $1,300
Average Traditional Cap Rate: 2.2%
Walk Score: 52

The Strip is definitely one of the coolest and most exciting Las Vegas neighborhoods to live in. that’s why it comes as no surprise that it is also the 5th best area for buying a traditional rental property in the Las Vegas real estate market in 2020. Homes for sale in Las Vegas in The Strip neighborhood are listed for more than the median property price in Sin City, but that’s totally understandable with all the attractions and entertainment options around. If you want to invest in real estate in one of the most up and coming neighborhoods across the entire US housing market in 2020, consider investing in a traditional rental in the Strip. With the right real estate investment tools, you will be able to conduct neighborhood analysis and find a top-performing investment property in a matter of minutes.

5. Sunrise

Median Property Price: $205,100
Average Price per Square Foot: $155
Average Monthly Traditional Rental Income: $1,060
Average Traditional Cap Rate: 2.0%
Walk Score: 70

According to the data gathered for this Las Vegas real estate market 2020 report, Sunrise ranks as #5 among the best Las Vegas neighborhoods for investing in traditional rental properties. One of the most important features of the Sunrise neighborhood is the affordable property prices, making buying cheap houses for sale in Las Vegas with high profitability a feasible option. Sunrise provides its residents with many amenities, which is an important factor for attracting renters. Beginner real estate investors should consider buying an investment property in Sunrise as one of the best places to invest in real estate in Sin City in 2020.

6. East Las Vegas

Median Property Price: $212,400
Average Price per Square Foot: $154
Average Monthly Traditional Rental Income: $1,100
Average Traditional Cap Rate: 2.0%
Walk Score: 49

The last on the list of the top neighborhoods in Las Vegas to buy a rental property in 2020 is East Las Vegas. This is one more area which offers affordable homes for sale in Las Vegas, making it an ideal option for new real estate investors and others with a limited budget. The East Las Vegas neighborhood real estate market is mostly comprised of new homes, built after 2020. If you’re interested in a real estate investment strategy within your budget, have a look at traditional rentals in East Las Vegas.

Las Vegas Real Estate Market: Airbnb Rentals

Average Monthly Airbnb Rental Income: $3,170
Average Airbnb Cap Rate: 6.2%
Average Airbnb Occupancy Rate: 57.7%
Optimal Property Type: Townhouse or condo
Optimal Number of Bedrooms: 1 or 2
Airbnb Rental Listings: 641
3 Best Neighborhoods in Las Vegas for Buying an Airbnb Investment Property: Sunrise Manor, Buffalo, and Kyle Canyon
3 Worst Neighborhoods in Las Vegas for Investing in an Airbnb Property: Tule Springs, North Cheyenne, and Enterprise
Airbnb Las Vegas Legal Status: Only owner-occupied primary residences can legally operate as Las Vegas short term rentals. Las Vegas vacation rentals have to be licensed every six months and to pay relevant taxes.
Annual Events in Las Vegas with the Highest Airbnb Occupancy Rate:
- Martin Luther King Jr. Parade: mid-January

This annual event features floats, marching bands, and an awards ceremony to commemorate the human rights activist.

- High Roller Super Bowl: first weekend of February

The main event to watch the Super Bowl in Las Vegas takes place in the Showboat Casino Hotel.

- Chinese New Year: beginning of February

The Las Vegas Asian-Pacific Cultural Center sponsors the annual celebration of this major holiday with different events throughout the city.

- St. Patrick’s Day Parade: 17 March

A series of parades take place under the auspices of the Mayor in addition to creating a general party atmosphere in Downtown.

- World Series of Poker: mid-April to mid-May

Some of the top gamblers from the entire nation get together to compete in the million-dollar month-long competition at Benny Binion’s Houseshoe in Downtown Las Vegas.

- Fremont Street Mardi Gras: around the third week of April

Numerous city guests celebrate the beginning of Lent with the Cajun New Orleans-style partying on Fremont Street.

- Cinco de Mayo: weekend closed to 5 May

The Mexican Patriotic Committee sponsors a series of events including parades, clowns, food, and drinks around Freedom Park.

- Jazz in the Park: mid-May to mid-June

A number of evening outdoor jazz concerts take place in the Clark County Government Center amphitheater.

- Fourth of July Fireworks: 4 July

Las Vegas guests can watch spectacular fireworks shows at a number of different locations including Cashman Field, Desert Breeze Park, Morrell Park, the Las Vegas Motor Speedway, Hills Park in Summerlin, Bicentennial Park in Boulder City, and others.

- Best in the Desert: September

A three-day desert and mountain race takes place from Las Vegas to Reno covering a 300-mile track in the longest off-road race in the US.

- Blue Sky International Film Festival: late September

This is Nevada’s largest film festival which screens the latest documentaries and short features of independent directors at Regal’s Village Square Cinemas.

- Art in the Park: early October

In this charitable event benefiting the Boulder City Hospital Foundation numerous artists, painters, jewelers, and others craftsmen come to Wilber Park, Bicentennial Park, North Escalante Park, and South Escalante Park in Boulder City.

- Las Vegas Odyssey: November

A four-day celebration of food, wine, and art takes place in a number of venues across Las Vegas, where the proceedings go to charity.

- Las Vegas Marathon: December

Thousands participate in the 26-mile marathon along the Las Vegas Strip and Fremont Street in a full-day charity event featuring parties and banquets.

- New Year’s Eve Downtown: 31 December

Las Vegas guests can enjoy live music and synchronized fireworks at the Fremont Street arcade.

- New Year’s Eve on the Strip: 31 December

On New Year’s Eve the Las Vegas Strip is crowded with partying people and renowned entertainers.

As you can imagine, Airbnb Las Vegas as all it takes to have turned into one of the most profitable short term rental industries not only in the US housing market but also globally. Thus, it comes as no surprise that in 2018 alone Las Vegas Airbnb hosts generated $100 million in Airbnb income. Over the past few years Las Vegas vacation rentals have grown exponentially to capture the demand from the millions of leisure tourists and business travelers coming to Sin City every year.

The immense spread of Las Vegas short term rentals all across the city forced the local authorities to impose a new Las Vegas Short Term Rental Ordinance in December 2018, which came into effect at the beginning of 2019. According to the new Airbnb Las Vegas laws, only primary residences can be rented out on short term basis. This means that non-owner occupied investment properties can no longer operate as legal Las Vegas vacation rentals. When the new Ordinance was introduced at the end of 2018, only 2% of all Airbnb Las Vegas rental properties were primary residences. This restrictive measure explains the fact why there are so few Airbnb listings in the Las Vegas real estate market at the moment. Moreover, unlike other top Airbnb locations which have limited short term rentals to owner-occupied properties only, the Las Vegas authorities are putting real efforts into imposing these restrictions.

After reading the latter section of this Las Vegas real estate market report 2020, if you are determined to buy an Airbnb investment property in the Las Vegas housing market, you should not get discouraged. There is still a way to become a Las Vegas Airbnb host fully legally, namely through house hacking. While the concept of house hacking is usually associated with buying a duplex, triplex, or another small multi family home to live in one housing unit and rent out the rest on a long term basis, recently it’s been mentioned more and more often in relation with Airbnb rentals as well. This is because of the draconian measures which many previously most profitable Airbnb locations have been taking against short term rentals in the US real estate market. House hacking can be applied in Sin City too. If you are a local real estate investor who does not have a home yet, you can buy a small multi family property and live in one of the units while renting out the other on Airbnb, HomeAway, VRBO, or another home sharing platform. If your budget is really limited and you are not sure that being an Airbnb host is the right endeavor for you, you can even start with buying one of the single family homes for sale in Las Vegas and renting out a single room on a short term basis.

If you decide to run an Airbnb property in the Las Vegas real estate market, you should keep in mind that you need to obtain a permit and renew it every six months. Moreover, you will be expected to pay certain taxes, just as in any other location.

Despite the strict regulations, Airbnb Las Vegas proves to be a profitable real estate investing strategy in 2019, and this is expected to continue in 2020. Las Vegas vacation rentals generate an average Airbnb cap rate of 6.2%. This is more than the return on investment provided by traditional Las Vegas rentals. Moreover, it exceeds significantly the rate of return in many of the other best places to invest in real estate properties across the US.

If you plan to buy an Airbnb rental property in Sin City in 2020, remember to use the best tools to perform accurate and efficient Las Vegas real estate market analysis to choose a top-performing property in one of the most profitable Las Vegas neighborhoods for this rental strategy.

Las Vegas Airbnb Laws and Regulations

In December 2018 the City of Las Vegas followed the example of many other major US cities and imposed strict regulations on the short term rental business in Sin City. According to the new Las Vegas Short Term Rental Ordinance, only primary residences can be operated as Las Vegas vacation rentals. Moreover, owner-occupied short term rentals in the Las Vegas real estate market need to follow the Zoning Codes to avoid problems with the local authorities.

In addition, Las Vegas Airbnb hosts need to obtain a yearly business license for a fee of $500 and a short term residential rental permit to be renewed every six months. Liability insurance is also a must. For Las Vegas vacation rentals in condo buildings or other buildings with an HOA, permission must be received from the homeowners association before starting an Airbnb business.

Last but not least, Airbnb Las Vegas rentals need to pay a lodging tax which comes to about 13% of the rental fee.

Nevertheless, running a Las Vegas Airbnb business allows investors to make money in real estate in 2020. The strong demand from the millions of annual visitors makes this rental strategy very profitable. The way to become an Airbnb host in the Las Vegas real estate market legally in 2020 is to employ house hacking.

Best Las Vegas Neighborhoods for Investing in Airbnb Rentals

Las Vegas Real Estate Market Report 2020 Best Neighborhoods in Las Vegas for Investing in Airbnb Rental Properties

1. Sunrise Manor

Median Property Price: $247,100
Average Price per Square Foot: $149
Average Monthly Airbnb Rental Income: $1,120
Average Airbnb Cap Rate: 13.0%
Average Airbnb Occupancy Rate: 62.9%
Walk Score: 22

This Las Vegas real estate market report positions the Sunrise Manor neighborhood on top of the list of the best areas for owning an Airbnb Las Vegas property in 2020. The local housing market offers a wide range of property types including single family homes, condos, and townhouses for sale. All these Las Vegas homes for sale could be a good starting point for new investors who are considering house hacking in Sin City. Property prices in Sunrise Manor are significantly below the Las Vegas average level, providing affordable opportunities. Moreover, the area has one of the highest Airbnb occupancy rates in the whole city. All these factors lead to double-digit return on investment for Las Vegas short term rentals in the area. Renting out a property on a short term basis in Sunrise Manor can help you lots of money in 2020.

2. Buffalo

Median Property Price: $388,200
Average Price per Square Foot: $176
Average Monthly Airbnb Rental Income: $4,740
Average Airbnb Cap Rate: 9.8%
Average Airbnb Occupancy Rate: 69.2%
Walk Score: 64

The second best location for investing in Las Vegas vacation rentals in 2020 will be the Buffalo neighborhood. This area provides reasonable Las Vegas real estate prices, a very high Airbnb occupancy rate, and excellent Airbnb income. Investing in an Airbnb rental property in Buffalo is a high-profitability option for new real estate investors in Sin City who also need a home.

3. Kyle Canyon

Median Property Price: $354,700
Average Price per Square Foot: $168
Average Monthly Airbnb Rental Income: $4,390
Average Airbnb Cap Rate: 9.5%
Average Airbnb Occupancy Rate: 46.5%
Walk Score: 57

The 3rd top location for investing in Airbnb Las Vegas according to this Las Vegas real estate market report is the Kyle Canyon neighborhood. This is also the second best neighborhood to live in Las Vegas, which makes it such an excellent place for attracting Airbnb guests. The return on investment on Las Vegas short term rentals in Kyle Canyon is very high as a result of the low property prices and the great Airbnb rental income. Buying a vacation rental home in Kyle Canyon provides real estate investors with an opportunity to generate significant profits in 2020.

4. Rancho Charleston

Median Property Price: $341,100
Average Price per Square Foot: $173
Average Monthly Airbnb Rental Income: $3,810
Average Airbnb Cap Rate: 8.6%
Average Airbnb Occupancy Rate: 56.6%
Walk Score: 81

Rancho Charleston ranks as the 4th best neighborhood in Las Vegas to invest in a short term rental property in 2020. This is also one of the most walkable neighborhoods in the Las Vegas housing market. The Rancho Charleston neighborhood offers cheap houses for sale in Las Vegas as well as high rate of return on Airbnb rentals. Beginner real estate investors in need of a home should considering buying a real estate property in Rancho Charleston, where they can rent out a room or two on Airbnb or another home sharing platform.

5. The Lakes

Median Property Price: $518,200
Average Price per Square Foot: $220
Average Monthly Airbnb Rental Income: $3,450
Average Airbnb Cap Rate: 7.9%
Average Airbnb Occupancy Rate: 64.2%
Walk Score: 73

The Lakes is one of the best Las Vegas neighborhoods to live in as well as the 5th best one for investing in Airbnb Las Vegas. Although real estate prices in The Lakes neighborhood exceeds those in the Las Vegas real estate market, the Airbnb occupancy rate and nightly rate are high enough to lead to excellent Airbnb rental income and return on investment in terms of both cap rate and cash on cash return. Investing in an Airbnb rental property in The Lakes can be a very profitable real estate investing strategy in 2020 if performed with the help of a Property Finder and an investment property calculator.

6. Winchester

Median Property Price: $256,800
Average Price per Square Foot: $155
Average Monthly Airbnb Rental Income: $3,170
Average Airbnb Cap Rate: 7.9%
Average Airbnb Occupancy Rate: 60.6%
Walk Score: 54

The last top neighborhood for buying a short term rental property highlighted by this Las Vegas real estate market report is Winchester. The Winchester neighborhood is one more place where investors can find homes for sale in Las Vegas at reasonable and affordable prices, below the median home value in Sin City. this location offers a good cap rate and a good cash on cash return for Las Vegas vacation homes. Real estate investments in Winchester can help investors achieve high profitability in 2020.

Investing in Las Vegas Real Estate Properties: Optimal Rental Strategy

As experienced real estate investors know, choosing the right rental strategy is just as important for a successful investment as buying a good investment property. Thus, you should take many factors into consideration before deciding in favor of investing in traditional Las Vegas rental properties or Airbnb Las Vegas rentals.

With respect to return on investment – one of the most important factors – Las Vegas vacation rentals are the better choice, as highlighted above in this Las Vegas real estate market report 2020. They bring a significantly higher rate of return in terms of cap rate and cash on cash return. This is the result of the higher nightly rate which investors can charge with this rental strategy. The high Airbnb occupancy rate in the Las Vegas real estate market supports the profitability of short term rentals.

However, Airbnb Las Vegas is not a viable option for out of state investors or those who already own a home. As of the beginning of 2020, only primary residences can be operated as short term rentals in Sin City. This means that the only option which investors have is to buy a home and list a part of it on Airbnb or another home sharing platform. Buying an investment property for the sole purpose of turning it into a Las Vegas vacation rental is not feasible.

Consequently, this year traditional rentals have emerged as the optimal rental strategy in the Las Vegas housing market. The high share of renters and the high price to rent ratio guarantee that Las Vegas landlords will benefit from high rental demand in 2020. In the coming year, long term rentals are expected to remain the better real estate investing strategy in Sin City.

Why You Should Invest in Real Estate in Las Vegas in 2020: The Pros

Regardless of their experience, knowledge, and background, all real estate investors buy rental properties in order to make money. That’s the reason why you should consider investing in income properties in Las Vegas in 2020. Sin City has been and promises to continue to be one of the best places to invest in real estate in 2020. The profitability of rental properties there exceeds the rate of return that most other major US cities offer, as this Las Vegas real estate market report shows. While the city average capitalization rate for both short term and long term rental properties is below what is considered a good cap rate, it is more than what other top locations will offer in 2020. What investors need to do is to get access to the best real estate investment tools for 2020 to facilitate rental property search and analysis.

The second most important advantage of investing in Las Vegas real estate is the affordable property prices in Sin City. It might sound surprising, but finding cheap houses for sale in Las Vegas in 2020 will be fully feasible and achievable. Las Vegas real estate market analysis shows that the median home value there is significantly less than in the vast majority of other most profitable locations for real estate investments. This is of particular importance to new real estate investors who still have little cash or few other financing options.

Savvy real estate investors should care not only about the short term return which will get in the form of rental income. They need to consider long term profitability as well. In the last two decades, real estate appreciation in Las Vegas has been very good, above the national average. In 2020 Las Vegas real estate prices are expected to continue going up at a reasonable pace. This means that investors will be able to take advantage of long term appreciation without the need to make hasty investment decisions before property prices become unaffordable.

Last but not least, according to the Las Vegas housing market forecast, Sin City will remain a buyer’s market in 2020. This is positive news for everyone planning to buy an investment property there in the new year. Although making a profitable real estate investment in a seller’s market is possible if you use the right tools, it’s much easier in a buyer’s market.

Why You May Not Want to Invest in Real Estate in Las Vegas in 2020: The Cons

There is one main reason why investors should think carefully before deciding to buy a rental property in the Las Vegas real estate market 2020. This is the strict Short Term Rental Ordinance, which prohibits Las Vegas vacation rentals in non-primary residences. While long term rental properties offer an excellent return on investment in Sin City, you have to be 100% sure that this is your preferred rental strategy before making a purchase. Once you buy an investment property to operate as a traditional rental, you cannot switch your rental strategy. Renting out an investment property on a short term basis is simply illegal in the Las Vegas housing market and faces sizeable fines.

However, if you are confident that you want to become a landlord in 2020, Las Vegas might just as well be the right place for you to start a real estate investing business. With nearly 6,000 homes for sale in Las Vegas and a median property price of $383,900, this is definitely one of the best places to buy a profitable rental property in the US. another option is house hacking where you rent out the extra housing unit(s) on Airbnb.

Las Vegas Housing Market Forecast 2020

The Las Vegas real estate market trends for 2020 are all positive for investors. Most importantly, Sin City will continue to be a relatively cold buyer’s market where buying your first rental property will be less challenging than in other hot markets. The city offers a wide inventory of Las Vegas homes for sale, providing real estate investors of all backgrounds to find the right income property with an ease. Moreover, real estate development and redevelopment including in homebuilding are expected to provide even more residential real estate listings in the Las Vegas market.

In terms of return on investment, Las Vegas is expected to remain one of the most profitable locations for real estate investing in 2020. The drivers behind this Las Vegas real estate trend are the growing population, the high proportion of renters, the strong economy, and the large number of tourists. All these forces are forecast to continue working together towards making Sin City one of the best places for buying rental properties in the coming year.

With regards to different property types, as shown above in this Las Vegas real estate market report, in 2020 single family homes for sale in Las Vegas will continue dominating the market. This is good news for investors as single family real estate properties make for excellent traditional rentals which attract some of the best tenants. Moreover, they come with few limitations (as opposed to condos), are relatively easy to maintain, and generate high long term appreciation.

Naturally, no housing market forecast can be all positive. The most important negative Las Vegas real estate trend which investors should consider is the fact that short term rentals will most likely remain tightly regulated. There are no signs that non-owner occupied Airbnb Las Vegasf properties will become a legal option any time soon.

Additional Resources for Las Vegas Real Estate Investors

Top-Performing Las Vegas Investment Properties

As you have seen from everything said so far in this Las Vegas real estate market report, finding profitable investment properties in Sin City will be relatively easy in 2020. Nonetheless, smart real estate investors should do everything possible to put themselves ahead of the competition. One of the best ways to get a competitive edge in 2020 is to use the right real estate investment tools to find and analyze investment opportunities quickly and efficiently.

The heatmap analysis tools is the most straightforward way to conduct fast Las Vegas real estate market analysis to identify the best neighborhoods in Sin City for investing in rental properties. Mashvisor’s heatmap will show you a color-coded Las Vegas neighborhoods map which shows you the places with the highest and lowest listing price, traditional rental income, Airbnb rental income, traditional cash on cash return, Airbnb cash on cash return, and Airbnb occupancy rate. This neighborhood analysis will help you find locations with affordable property prices and high profitability.

After you’ve identified a few of the best neighborhoods in Las Vegas for your optimal rental strategy, you can use Mashvisor’s investment property calculator to conduct detailed neighborhood analysis. This real estate investing tool will provide you with the median property price, the average price per square foot, the average traditional and Airbnb rental income, the average traditional and Airbnb cash on cash return, the average Airbnb occupancy rate, real estate listings, traditional listings, Airbnb listings, and other important indicators. This detailed neighborhood analysis will help even beginner real estate investors confirm if that’s the best place in the Las Vegas housing market to buy a rental property for them.

Mashvisor’s Property Finder tool will allow new investors as well as expert ones to search for the top-performing Las Vegas rental properties for sale based on their budget, preferred rental strategy, and optimal number of bedrooms and bathrooms. This is the easiest and fastest way to conduct investment property search in 2020.

Last but not least, Mashvisor’s rental property calculator will provide you with detailed investment property analysis of any property in the Las Vegas real estate market which catches your attention. You will get immediate access to the cost analysis (including one-time startup costs and recurring monthly rental expenses), the estimated rental income for the traditional and Airbnb strategy, cash flow, traditional and Airbnb cash on cash return and cap rate, occupancy rate, and everything else that you need in order to make an informed real estate investment decision.

If you want to get access to all these real estate investment tools immediately to analyze which homes for sale in Las Vegas will make the most profitable investment properties in 2020, start your 14-day free trial with Mashvisor now.

Best Las Vegas Real Estate Agents

Many real estate investors prefer to buy rental properties without an agent. While this might be a good decision for experienced full-time investors who have enough knowledge and time to close a deal well, it is not the best strategy for beginner investors. If you are new to the exciting world of real estate investing and want to buy an investment property in the Las Vegas real estate market 2020, it is recommended to hire one of the top real estate agents in Las Vegas to help you with the purchase. A qualified Las Vegas real estate agent will help you negotiate the right price and close the deal efficiently. Following are some of the best Las Vegas real estate agents to choose from:

Las Vegas Real Estate Auctions

As this Las Vegas real estate market report has previously highlighted, investing in Las Vegas foreclosures for sale is one of the best strategies to increase your rate of return on a rental property. If you think that this is the right real estate investing strategy for you in 2020, you should have a look at the Las Vegas real estate auction calendar to know what foreclosed homes sell when in the area.

Property Management of Traditional Las Vegas Rental Properties

If you are hesitant to buy a rental property in the Las Vegas real estate market because you don’t want to become a landlord, there is no reason to miss on this profitable opportunity. Investing in rental properties in any US housing market can be a passive real estate investment strategy in 2020. All you have to do is to hire a professional property management company to take care of your income property.

Property Management of Las Vegas Short Term Rentals

Similarly, starting an Airbnb Las Vegas business does not have to be equivalent to being an Airbnb host. If this is your preferred rental strategy, you can hire a vacation rental property manager to deal with your Las Vegas Airbnb guests and your rental property. However, before investing in Las Vegas vacation rentals, you have to familiarize yourself with the strict Ordinance and ensure that you operate your business fully legally.