Las Vegas Valley Sees Surge in Investor Home Purchases

by Bret Jenny

The Las Vegas Valley has seen a significant surge in investor purchases, with a 2.7% increase in the first quarter of 2024, according to a recent report by Redfin. This marks one of the largest upticks in the country, with only Oakland, California, experiencing a bigger increase.

A Growing Demand for Investment Properties

Real estate agents like Bret Jenny with Simply Vegas are witnessing this trend firsthand. "The number of inquiries we receive from investors looking for off-market properties to rehab and flip or rent is indicative of the growing demand," he said. With inventory still historically low across the valley, investor activity is on the rise.

All-Cash Transactions Dominate

Most investor purchases (69%) are all-cash transactions, making them less affected by high mortgage rates. This trend is contributing to the increased demand for investment properties.

Investor Activity on the Rise Nationally

Redfin estimates that the typical price of an investor home in the U.S. is $464,560, a 9.2% increase from last year. Investors have already purchased $31.3 billion worth of American homes in the first quarter, a 6.6% year-over-year increase.

Limited Inventory Drives Investor Activity

With limited inventory in the valley, especially in the under $400,000 price range, investor activity is increasing. According to MLS data, only 17% of single-family residential properties on the market are priced under $400,000.

Redfin's Report Highlights Market Trends

Redfin's report outlines the fluctuations in investor purchases over the past few years, including a surge during the pandemic and a subsequent decline. However, with rising home prices and rents, investors are now easing back into the market.

Wall Street-Backed Hedge Funds and Institutional Investment Companies

Las Vegas is also seeing an increase in Wall Street-backed hedge funds and institutional investment companies, such as Invitation Homes, buying up single-family residential properties and turning them into permanent rentals. This trend has led to proposed legislation aimed at regulating institutional investors.

UNLV Study Reveals Extent of Investor Activity

A UNLV study found that investors have bought up close to 15% of the housing stock in Clark County and own nearly a quarter of North Las Vegas.

Unprecedented Sales in the Local Housing Market

Last year, a record-breaking sale saw two Wall Street-backed companies swap 264 Las Vegas homes in a single transaction, highlighting the growing trend of institutional investors in the local housing market.

Stay up-to-date on the Las Vegas real estate market with me! If you have any questions or need assistance with buying or selling a home, please don't hesitate to reach out.

Bret T Jenny

https://www.simplyyourhouse.com/

(702)628-3476

Simply Vegas

BS.1001584

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Bret Jenny

Broker Associate | BS.BS.1001584

+1(702) 628-3476