The Las Vegas Valley has experienced a significant rise in home prices since the onset of the COVID-19 pandemic, with prices nearly doubling from March 2020 to January 2023. A report from Zillow highlights that the average home price in the area increased by 48 percent, reaching $425,474. This growth surpasses the national average increase of 45.3 percent.
The surge in home prices was initially driven by Las Vegas’ relative affordability and appealing climate, making it a sought-after market during the early pandemic period. However, as mortgage rates increased in 2022, buyer activity cooled, leading to a more balanced market where home values are now growing at a steadier pace.
Additionally, the number of homes in Las Vegas valued at over $1 million has tripled, though these homes have seen a reduction in size—losing about 700 square feet and half a bathroom since January 2020. This “shrinkflation” trend reflects a broader national pattern where substantial home value appreciation occurred in a condensed time frame.
Rental prices in Las Vegas have also risen, with a 35.9 percent increase since the pandemic began, slightly outpacing the national average of 33.4 percent. Despite the increase, renting remains relatively affordable for higher-income residents in the area.
The valley’s residential market has one of the highest rates of failed pending deals, ranking third in the U.S., following Atlanta and Orlando. This rate has increased from 16.4 percent in early 2022 to over 18 percent.
Lastly, Las Vegas issued 51,948 new single-family home permits from January 2020 to November 2024, reflecting ongoing development in the area. This growth trajectory places Las Vegas among the fastest-growing housing markets in the nation since the pandemic’s start, though Miami leads with a 61.1 percent increase in home prices.