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Las Vegas Housing Supply Rises 31% As Demand Stumbles, Pushing Sale Prices Down Slightly

Inventory is growing more in Las Vegas than anywhere else in the nation while home sales fall, with many local residents backing off amid economic uncertainty and a faltering tourism industry

SEATTLE--(BUSINESS WIRE)-- The total number of homes for sale in Las Vegas rose 31% year over year in July, the biggest increase of any major U.S. metro area and roughly triple the national increase. That鈥檚 according to a new from , the real estate brokerage powered by Rocket. That marks a year straight of 20%-plus inventory increases for Las Vegas.

Supply is piling up in Las Vegas because would-be homebuyers are sitting on the sidelines. Pending home sales fell 8.6% year over year in July, and closed sales fell 8.5%. Home sales in Las Vegas have been falling on a year-over-year basis since spring.

The homes that are selling in Las Vegas are taking longer to do so than they have in the past. The typical home that sold in July took 55 days to go under contract, 16 days longer than a year earlier.

The overall U.S. housing market has been for many months due to high homebuying costs and widespread economic uncertainty. But a recent Redfin analysis found that Las Vegas is cooling faster than any other metro area in the country.

There are several reasons the Las Vegas housing market is stumbling:

• Most homes are unaffordable for Las Vegas locals. Just 20% of Las Vegas listings are affordable to a family earning the local median income. To put lack of affordability another way, the typical Las Vegas household would need to spend 40% of their income to buy the median-priced home. A home is typically considered affordable if a household spends no more than 30% of its income on housing.
• Renting is more affordable. In Las Vegas, the median monthly asking rent is $1,586. While that鈥檚 up 2.6% from a year ago, it鈥檚 much less than the typical mortgage payment. To purchase the median-priced Las Vegas home at today鈥檚 average mortgage rate, a buyer would pay $2,472 per month. Some would-be first-time homebuyers are likely turning toward rentals.
• Tourism is suffering due to wider economic uncertainty. The Las Vegas economy relies heavily on the tourism and hospitality industries. This year, tourism in Sin City has been declining, with the number of visitors dropping 11% year over year in June. Americans are spending less money on discretionary things like travel amid widespread economic instability surrounding things like tariffs, layoff jitters, and declining consumer confidence. Much of the slowdown in tourism comes from a dropoff in Canadian visitors post-tariffs, according to reports.
• Historically volatile housing market. Las Vegas is typically considered a volatile housing market compared to other major metro areas. Its housing market crashed during the 2008 financial crisis, and boomed from an influx of Californians moving in during the pandemic. Now, with tourism suffering and migration into Las Vegas dropping off, the housing market is on a downward trend.
• Short-term rental restrictions. Las Vegas has implemented strict short-term rental rules over the last several years, making it less attractive than it once was to own a rental property. Some people are choosing to put those on the market.

鈥淟as Vegas is feeling the effects of affordability pressures and elevated mortgage rates more acutely than many other markets, partly because the city鈥檚 economy is dependent on a slowing tourism industry,鈥� said Chen Zhao, Redfin鈥檚 head of economics research. 鈥淭he resulting pileup of supply paired with slow demand is a tough pill for sellers to swallow, but it鈥檚 good news for buyers. With so many homes on the market鈥攁nd so many sitting for so long鈥攂uyers can take their time choosing from a plethora of options, and they may be able to negotiate prices down. And now that mortgage rates have near their lowest level in 10 months, Las Vegas buyers may be able to snag a meaningfully lower monthly payment.鈥�

It鈥檚 worth noting that sales have improved marginally in Las Vegas over the summer. In May, home sales fell 13.7% year over year, and now they鈥檙e down 8.5%.

, a agent in Las Vegas, said she has seen an uptick in buyers over the last several weeks as mortgage rates have declined. 鈥淏uyers who put their search on hold over the last year are resurfacing,鈥� Bergman said. 鈥淪avvy buyers know there are a lot of homes on the market and that they can get a better deal now than two or three years ago. Because some sellers are giving concessions and reducing prices, some buyers are able to get a lower monthly payment than they would have when mortgage rates were higher.鈥�

Supply Outpacing Demand Has Started Pushing Las Vegas Sale Prices Down

Rising supply and falling homebuying demand has started to push down sale prices. The typical Las Vegas home sold for $445,000 in July, down roughly 1% year over year. That鈥檚 the first decline since September 2023.

For comparison, sale prices in the U.S. as a whole are rising.

Some Would-Be Sellers Are Backing Off As They Notice Buyer鈥檚 Market

Prospective sellers are backing off as they come to terms with slow homebuying demand and stagnating prices.

While total inventory is piling up, new Las Vegas listings are falling. New listings dropped 5.7% year over year in July, the second month of declines after nearly two years of increases.

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About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin鈥檚 clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at . For more information about Rocket Companies, visit .

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Source: Redfin