Should I Buy A Luxury House in Las Vegas?
If you are an affluent buyer, then YES, buying a luxury home in Las Vegas might be the right decision.
The number of $1MM+ home sales continues to increase as Las Vegas attracts affluent buyers and investors from around the country.
Luxury Homes In Las Vegas Are Surprisingly Affordable
Las Vegas is seeing an influx of luxury home buyers because of how affordable it is.
Home prices in Nevada generally are lower than in other states like California, Colorado, and New York, which has led to a remarkable situation for many first-time homebuyers. They can afford luxury homes they would have never had access to before!
Relocating From California
As tens of thousands of people leave California yearly, some of them are choosing Las Vegas as their new home.
MANY buyers today are relocating from California due to extremely high home prices and a difficult real estate market, which has seemingly reached a boiling point.
California residents, as well as residents from other high-priced states, find Las Vegas’ prices to be within reach, allowing them to settle in good neighborhoods with high-quality schools and plenty of amenities.
Las Vegas vs. Los Angeles Home Prices
To understand just how much difference there is in home prices between Las Vegas and California, let’s look at a comparison.
In Las Vegas, for $1MM, you can get a 4-bedroom to 5-bedroom home with four bathrooms and perks such as an outdoor patio, pool, and a private backyard. Sizes can run as high as 3,200 square feet.
Meanwhile, in Los Angeles, a $1MM home will likely have two bedrooms, one bathroom, and hover around 1,000 square feet in size.
Granted, California’s market does have some price diversity. Certain areas are cheaper than others, but this difference is a window into the staggering dissimilarity between Nevada and California.
Luxury Homes Are Good Investments
It always amazes us that people are willing to pour millions of dollars into high-risk investments like cryptocurrencies when real estate investments are a time-tested, stable way to build wealth.
As home prices continue to rise, capitalizing on equity becomes a potentially powerful strategy for homebuyers.
Wow – Huge Increases In Equity!
Since 2020, some homes in Las Vegas gained anywhere from $150K to $250K in equity.
Granted, this is a definite outlier and isn’t what you should expect in any normal three-year stretch, but this goes to show the power of making a smart real estate investment.
If you are interested in buying an investment home for the long term, call us today at 702-310-6683. We know the best areas in the city and the ones most ripe for investment.
Tourism Draws Affluent Investors To Las Vegas
There is no doubt that Las Vegas benefits tremendously from its tourist industry and the millions of people who visit each year.
In 2022, 39 million people visited the city, which isn’t out of the ordinary. Las Vegas routinely draws similar numbers.
With such high traffic, it’s not hard to see why businesses in the hospitality, food and beverage, and entertainment sectors are thriving.
While tourism isn’t the only reason affluent buyers are getting properties in Las Vegas, it certainly plays a role, as there is a lot of money to be made.
Nevada and Las Vegas Tax Benefits
Nevada is well known for its friendly tax laws, and potential homebuyers will be happy to know that property taxes in Las Vegas are quite low.
Nevada boasts an average effective property tax of 0.48 percent, compared to 0.99 percent, which is the national average.
Bear in mind that property tax in Las Vegas is higher than in the rest of Nevada.
You can expect to pay anywhere from 0.50 percent and 0.75 percent in the city.
Tax-Free Capital Gains
After living in your primary home for more than 2 years, your capital gains are tax-free, up to $250K for a single person and double that amount for a married couple.
This incentive offered by the state is yet another reason why you may find Las Vegas an appealing base to buy and eventually sell a luxury home.
No State Income Tax
Beyond the tax benefits mentioned, Nevada is one of only eight states in the country that does NOT have a state income tax.
Likewise, some items are sales tax exempt, such as unprepared food, i.e., most types of grocery products.
Las Vegas Amenities Are Phenomenal
The market for luxury homes is typically targeted towards high-net-worth individuals and families who are looking for a prestigious, high-end property that provides a comfortable and luxurious lifestyle.
Luxury homes in Las Vegas are most likely going to be located in guard-gated communities with local amenities, such as fitness centers, pools, restaurants, and entertainment.
These amenities are rolled into a larger luxury lifestyle offered by the city.
Naturally, those looking for a luxurious lifestyle with plenty of perks are going to be drawn to Las Vegas due to its numerous amenities.
Thousands of Amenities
The greater Las Vegas area has thousands of amenities and virtually limitless offerings, the Las Vegas Strip being just one example.
Outdoor enthusiasts also have access to over 100 parks and facilities.
Luxury Homes in Las Vegas Are Diverse
Homebuyers looking for diversity will most likely be interested in Las Vegas’ luxury home offerings, which cover a broad range of design styles.
We like to call Las Vegas, “The city with something for everyone.”
Years ago, finding a luxury home in the $1MM+ range took moderate effort. Today, luxury home options in the city are numerous and relatively easy to find, including ultra-luxurious homes that run anywhere from $5MM up to $20MM.
With such a strong influx of buyers from other states, luxury home builders in Las Vegas have pivoted their approach to accommodate. They’ve done so by diversifying their design portfolios.
Luxury Home Builders in Las Vegas
Builders in Las Vegas that specialize in luxury homes include but are not limited to Blue Heron, Jewel Homes, Growth Luxury, Christopher Homes, Toll Brothers, and Lennar.
Each of these builders has something different to offer.
Lennar, for instance, is a spec home builder that offers an attractive blend of luxury and affordability.
Blue Heron, meanwhile, builds world-class custom homes that are truly beautiful and luxurious. You’d be hard-pressed to find better homes in the city.
Modern & Contemporary Homes in Las Vegas
While there are substantial differences between modern and contemporary home designs overall, there are plenty of luxury properties in Las Vegas that blend styles.
Modern homes maintain a minimalist design approach and an open floor plan and tend to use natural materials.
Contemporary home styles, by contrast, are the most popular in the market for buyers and architects. As such, contemporary designs tend to break the mold while incorporating new elements.
Currently, contemporary homes feature sleek and modern designs with clean lines and minimalist aesthetics. They often feature large windows and open floor plans and may include unique and innovative design features.
Architectural features such as floating staircases and cantilevered balconies are frequent additions.
Mediterranean Homes in Las Vegas
Mediterranean-style homes feature stucco exteriors, clay roof tiles, and ornate details such as arches and columns. These homes often have large outdoor spaces and courtyards.
Other features include arched windows, terraces, wrought-iron balconies, carved stone accents, and natural materials like stone, marble, and wood.
Ranch Homes in Las Vegas
Ranch-style homes are typically single-story and feature open floor plans and simple, unadorned exteriors. They often have large windows and expansive outdoor living areas for people to gather and socialize.
Rustic embellishments on the exterior of the house are also common, with a patio or deck that allows people to enjoy the scenery.
Italian Village Homes in Las Vegas
Inspired by traditional villas found throughout Italy, these homes have large, open living spaces, high ceilings, and fancy finishes, such as marble, as well as intricate tile work and ornate moldings.
Wine cellars and multiple fireplaces are also common, as are expansive terraces and outdoor living spaces.
Exterior features include clay tile roofs, stucco walls, and decorative accents such as wrought-iron gates.
Las Vegas Has A Strong Rental Market
Las Vegas’ quickly growing population has led to a robust rental property market, with the number of rentals steadily growing substantially for the last few years—as much as 3 percent per year.
Currently, rent rates have stabilized in the city, which is good news after the large rent rate increases caused by the pandemic and low interest rates.
From 2020 to 2022, rent rates increased by as much as 40 percent.
Further Reading: Luxury Home FAQs
What Classifies A Home As Luxury?
A higher price tag is the main giveaway.
It’s generally accepted that the starting price for a luxury home is $500,000, although some would argue for a higher amount than this, especially in expensive areas.
The best way to determine a price for a luxury home is to take the top 10 percent of all homes that have been sold in a specific market.
In Las Vegas 2022, the top 10 percent of homes cost $1MM+.
Higher Square Footage
Usually, luxury homes have higher square footage.
They are typically larger in size than standard homes and often come with extensive outdoor spaces, such as large yards, swimming pools, and outdoor entertainment areas.
They may also be located in exclusive neighborhoods or gated communities, providing residents with additional privacy and security.
Are Luxury Homes Custom Designed?
Yes, most luxury homes are custom-built. They address specific needs and the preferences of their owners.
What Are Common Luxury Home Features?
Luxury homes may feature luxurious finishes, state-of-the-art appliances and technology, and high-end materials and furnishings.
Quartz countertops, custom cabinetry, designer lighting fixtures, and state-of-the-art appliances are par for the course.
Luxury homes also tend to have expansive outdoor living spaces, such as patios, decks, and pool areas. These spaces often feature amenities such as fire pits, outdoor kitchens, and lounging areas.
Smart technologies are also common. These include auto-adjusting lights and thermostats, entertainment systems with a central control hub that can be accessed via smartphone, and high-end security systems.
Likewise, newer luxury homes today pioneer green energy technologies and may come with solar panels and energy-saving appliances.
What Is The Cost of a Luxury House?
Luxury homes run between $300 and $500 per square foot.
We categorize any home that is $1MM+ as luxury, although in certain areas, a lower price is justified. A city like Detroit is a good example.
By contrast, in Manhattan, luxury homes don’t start until you reach around $4MM.
Ultimately, the price for a luxury home varies significantly depending on the location, size, and amenities of the property and can range from several million dollars to tens of millions of dollars or more.