Investor home purchases in Las Vegas were up 105.5% in 2021 from a year earlier, according to Redfin, an online real estate service. Only Jacksonville saw a larger increase in the number of homes sold by investors — up 157% year-over-year.
Investor purchases accounted for 29.2% of all fourth quarter sales in Southern Nevada, according to Redfin. Nationally, investors purchased a record 80,000 properties, or 18.4% of homes purchased in the fourth quarter. More than three-quarters of investors paid cash.
Atlanta (32.7%) recorded the highest share of investor purchases in the fourth quarter, followed by Charlotte (32.1%), Jacksonville, Florida (29.8%), Vegas (29.2%) and Phoenix (28.4%).
The news comes as Clark County prepares for a new law on July 1 requiring it to allow vacation rentals, which are currently prohibited in unincorporated areas of the county.
Last week, county commissioners lamented the steep rent increases in southern Nevada.
Las Vegas is the most profitable place in the United States to own a vacation rental, according to Airbnb data collected by Compare the Marketa UK-based price comparison website. The average monthly rent for an Airbnb in Las Vegas is almost $10,500, or 555% more than the average rent for a rental.
Property management investment firms spend hundreds of millions of dollars to to buy short-term rentals across the United States
A town hall is scheduled for Wednesday evening with State Deputy Rochelle Nguyen, who has championed legislation allowing vacation rentals, and Clark County Commissioner Tick Segerblom.
“A lot of people are very keen on short-term rentals, both for and against,” Commissioner Segerblom said.
“AB 363 imposes certain limits on short-term rentals,” Segerblom said in a press release. “The question for the county is how far should we go to impose restrictions on them. Residential quality of life must be the priority.
“Investor demand is stronger than ever as house prices rise, allowing investors to charge higher rents and sell flip homes at higher prices,” according to Redfin.
The median price of a single-family home in Las Vegas rose 25% year-over-year in 2021 to $400,000.
“Investors are continuing to drive up prices because rents are also skyrocketing, prompting investors who are considering renting the homes they buy,” the Redfin economist said. Sheharyar Bokhari. “The supply shortage is also an advantage for landlords, as many people who cannot find a home to buy are forced to rent instead. Additionally, investors who “flip” homes see the potential to make a big profit as home prices soar.
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