- In 2024, you’ll need over $115,000 per year to buy a typical home in Las Vegas.
- Las Vegas home prices have jumped more than 40% since 2020, but typical incomes only went up 17%.
- Higher interest rates, from 3% to almost 7%, have greatly reduced what Las Vegas buyers can afford.
- You can find more affordable homes in North Las Vegas, West Henderson, and Northwest Valley.
- Almost half of people searching for homes in Las Vegas are from other states, which increases demand and prices.
Buying a home in Las Vegas used to be cheap compared to other big cities in the U.S., but things are different now. Higher home prices, rising mortgage rates, and more people moving there have made it hard for locals to afford homes. If you’re buying your first home, renting for a long time, or thinking about moving, you might wonder: How much money do you need to easily buy a house in Las Vegas now? We’ll explain it here—with advice from Steve Hawks, a top real estate agent in Las Vegas—so you can understand the Las Vegas housing market and plan your next steps.
Current Income Needed to Afford a Typical Home
In 2024, you need to earn more than ever to buy a house in Las Vegas. To comfortably afford a typical-priced home, buyers must make over $115,000 a year. This is based on a common money rule: Housing costs each month, including your mortgage, property taxes, homeowners insurance, and maybe HOA fees, should be no more than 30% of your total income.
The price of a typical home in Las Vegas is about $450,000, so monthly payments have gone way up. With a 7% mortgage rate and a 10% down payment, your monthly mortgage payment alone could be over $2,700. And this doesn’t even include utilities, repairs, and other costs of owning a home, which can add hundreds more each month.
Las Vegas used to be more affordable, but now it’s much harder to buy a home than it used to be. So, it’s really important to know how much income you need.
Income Needed a Few Years Ago
To really understand today’s situation, it helps to look back a few years. In 2020, the price of a typical home in Las Vegas was around $320,000. Back then, mortgage interest rates were very low, about 2.5% to 3.0%. Because prices were lower and rates were low, someone earning about $60,000 a year could likely afford a home.
Now it’s 2024, and both home prices and mortgage rates are much higher. Prices are up more than 40%, and rates have more than doubled. This big jump has made it impossible for many people to buy homes in Las Vegas—especially first-time buyers and families with middle incomes.
This change has shifted the local market. Las Vegas used to be a good place for many Americans to buy their first home, but now it’s a financial challenge, causing frustration and lots of competition.
Why Are Homes So Expensive?
The big increase in home prices in Las Vegas isn’t random. Several main things are making homes much more expensive:
Mortgage Rate Increases
From early 2021 to mid-2024, mortgage rates went from record lows around 3% to almost 7%. This really changes monthly payments. A loan at 3% compared to 7% can mean hundreds of dollars more per month—or even reduce what you can borrow by $75,000 or more for the average buyer.
Not Enough Homes for Sale
Like many busy housing markets, Las Vegas doesn’t have enough homes for sale. The number of homes listed for sale has stayed low, especially in popular areas and new neighborhoods. Builders are building more, but demand is still higher than the number of homes available.
People Moving From Other States
Las Vegas has become a popular place for people moving from more expensive states like California, Washington, and Oregon. These buyers from out of state often have higher incomes or money from selling their previous homes, so they can outbid local buyers. This trend keeps pushing prices up across the area.
Rent or Buy: Which Is Better Right Now?
For many people, the question is not just whether to buy—but if they can buy. With high prices and stricter lending, renting might seem like the better choice for now.
Cost Comparison
In 2024, the typical rent in Las Vegas is about $1,900 per month. But, buying a typical-priced home can cost over $2,700 each month, including the mortgage, taxes, insurance, and maintenance.
Home Equity or Flexibility
Renting can be cheaper and give you more flexibility at first. But buying a home helps you build equity over time. Owning a home can really help you build wealth, especially when home prices are going up. However, if you don’t have much money saved for a down payment or if mortgage payments are too high, renting might be better for you—at least for a while.
In the end, deciding whether to rent or buy depends on your financial situation and plans for the future. If you can’t afford to buy a home in Las Vegas right now, renting and saving money to buy later might be the smartest thing to do.
How Las Vegas Compares to Other Western Cities
Even though Las Vegas home prices have gone up a lot, it’s still cheaper than some cities on the coast and in urban areas. Typical home prices in cities like Los Angeles and San Francisco are much higher—from $800,000 to $1 million or more.
But, Las Vegas is quickly becoming as expensive as other fast-growing cities like Phoenix and Denver. Las Vegas home prices have also increased more than in some Texas cities like Austin and Dallas in the past year. This is mainly because of population growth and not enough homes for everyone.
This makes Las Vegas both appealing and competitive—it’s still somewhat affordable, but only if you can act fast and make smart choices.
Areas Where You Might Still Find Deals
While it’s harder to afford homes everywhere, some Las Vegas neighborhoods still have homes that cost less than the average for the whole area:
North Las Vegas
North Las Vegas is known for newer homes and large houses. It’s still one of the most affordable places in the area. It’s a good option for first-time buyers and families who need more space.
West Henderson
West Henderson has become a growing suburb with good schools, stores, and parks. There are many new homes being built there that are cheaper than the typical price—but prices are going up quickly.
Northwest Valley
This part of Las Vegas is a quiet residential area. It’s not as crowded and doesn’t have as many planned communities, but it offers good value, especially if you want a larger house.
Steve Hawks says that buyers often miss these areas because they’re looking in more popular ZIP codes. But, with his help, you might find good deals that will become more valuable later.
More People Moving In Changes Housing Demand
Las Vegas keeps attracting new residents in large numbers. Almost 50% of people searching for homes in Las Vegas are now from out of state. Most of these people come from:
- San Jose, CA
- Los Angeles, CA
- Seattle, WA
- Phoenix, AZ
These people moving in usually have more money because they’re selling more expensive homes where they used to live. While they help the local economy, they also unintentionally make housing more expensive and increase competition for the few homes available.
This trend of people moving to Las Vegas will probably continue as long as Las Vegas has lower taxes, a nice lifestyle, and somewhat lower home prices.
Why Interest Rates Are Really Important
Interest rates are one of the most ignored things when thinking about being able to afford a home. Even a small change of 1–2% in your mortgage rate can really affect your monthly budget and the price of the home you can buy.
Here’s an example from Steve Hawks’ meetings with buyers:
- In 2021: A $450,000 home at 3% interest meant a monthly mortgage of about $1,900
- In 2024: The same home at 7% interest means a monthly mortgage of about $2,800
That’s almost a $900 increase each month—adding over $10,000 per year in costs. This is why some buyers who could easily afford a home three years ago are struggling now.
Understanding interest rate trends and getting a good rate at the right time can be crucial for buying a home.
Wages Aren’t Increasing as Fast as Home Prices
One of the biggest reasons why it’s hard to afford a home in Las Vegas is that wages aren’t going up as fast as home prices. In the last four years:
- Typical home prices: Up 40%
- Typical household income: Up 17%
This difference makes it much harder to afford a home, especially for people with average and middle incomes. Home prices have increased more than the national average, but wages haven’t kept up—making it tough for many people who depend on local income to buy homes.
Because of this, people are changing how they live, more families have two incomes, and people are commuting longer distances to find cheaper homes in the suburbs.
What It Means for Real Estate Investors
Las Vegas has been a popular place for real estate investors for a long time, but things are changing. Steve Hawks says:
- Profits from flipping homes are smaller
- Rental income is lower unless you buy homes for less than market value
- People who bought properties a while ago are making big profits over time
Investors now need to be smarter, looking for deals with high returns and lower overall costs. Because rent increases are slowing down in some areas, investments might not make money right away. Hawks suggests focusing on properties that can be improved or are in neighborhoods that are starting to grow.
However, properties bought before prices went up are now very profitable for their owners. Many investors are keeping these properties instead of selling, hoping for prices to keep going up and demand to stay high.
Tips for Buyers to Afford More
Even though it’s hard to afford a home, there are things you can do to make it easier:
- Down Payment Help: Local and state programs help people with low to middle incomes with down payments and closing costs.
- FHA Loans: These loans from the government let you put down as little as 3.5%, making it easier to buy a home.
- Buy Less Than You Can Afford: Just because you can borrow enough to buy a $500,000 home doesn’t mean you should. Buy a home that fits comfortably in your budget.
- Look at Growing Areas: Find neighborhoods where new buildings or businesses are being developed. These areas often have lower prices now and could become more valuable later.
- Work With a Good Agent: Working with someone like Steve Hawks means you have a local expert who can help you find deals and avoid bidding wars that drive up prices.
How Steve Hawks Can Help You Compete
Steve Hawks is a well-known expert in the Las Vegas housing market, recognized as a Top 1% real estate agent nationwide. He knows local trends, is good at negotiating, and understands market timing, which makes him very helpful.
Whether you’re:
- Buying your first home and have a limited budget
- An investor looking for good deals
- Moving to the area and trying to decide on a neighborhood
Steve can help you deal with lots of competition, plan your offers, and get the best home for your money.
Schedule a free meeting with him today to talk about your timeline, financing, and what you’re looking for in a home. With an expert helping you, you’ll be ready when the right home becomes available.
What’s Going to Happen With Home Affordability in Las Vegas?
Looking ahead to the rest of 2024 and into 2025, the Las Vegas housing market looks somewhat positive. Mortgage rates might decrease a little if inflation slows down. This could make it easier for people to buy homes.
Also, building more homes in the suburbs might help with the shortage of homes for sale, but higher building costs are still a problem.
Steve Hawks says that buyers who are informed and ready will find good opportunities—even when there’s lots of competition. With smart ways to finance a home, good help from a real estate agent, and knowing the market well, buyers can still get good homes without paying too much.
Ready to buy a home in Las Vegas? Contact Steve Hawks to set up a free meeting to talk about buying a home. It’s always best to get advice you can trust when making one of the biggest purchases of your life.