The Las Vegas real estate market has been growing exponentially, along with the growth of the Las Vegas tourism industry.
Understanding the Las Vegas Real Estate Market
Buyer’s Market vs. Seller’s Market
To determine whether the Las Vegas real estate market is a buyer’s market, a seller’s market, or an even market, you must look at how many months of inventory exist in the market.
Months of inventory is calculated by taking the number of active listings divided by the number of homes sold per month.
For example, in March of 2025, Las Vegas had 5,269 active listings*, and saw 2,672 residential home sales**.
5,269 divided by 2,672 = 1.97 months of inventory = a seller’s market.
Well that explains the ingredients that make up the seller’s market, so the next question is, what happened that impacted the number of active listings and the number of home sales during that month?
Interest Rates
Interest rates heavily impact the Las Vegas real estate market.
When interest is high, it’s harder for a buyer to buy. So buyer’s demand goes down, and this will eventually drive prices down as well.
In the reverse, when interest rates are low, it’s much easier for a buyer to buy, because the cost of money is cheap. As well, the buyer can now afford a whole lot more house for the same price.
So when the buyer demand goes up (because interest rates are low), home prices go up along with it.
The Economy
The Las Vegas real estate market relies heavily on tourism and the hospitality industry.
Thus, in the event of global economic slowdown when tourism is reduced, the effect is felt on the local Las Vegas economy.
When the local labor market slows, unemployment rises, and it becomes more difficult for home buyers to buy a home.
This lowered demand will have the effect of lowering Las Vegas home prices along with it.
Other Factors
Increase in Population
As Las Vegas’s industry continues to grow at astronomical rates, more new jobs will be created.
As the unemployment rate goes down and wages increase, Las Vegas home prices will go up along with it.
New Construction & Inventory
With new construction comes an increase in inventory.
With an increase in inventory (supply), Las Vegas home buyers will have more options, and home prices will begin to fall.
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Sources
**https://nevadabusiness.com/2024/04/lvr-report-shows-home-prices-on-the-rise/