Home to an estimated 2.77 million residents, the Las Vegas Valley is famous for its extravagant gaming and entertainment venues, amazing desert landscape, and luxury master-planned communities that sprawl out and up toward the surrounding canyons and mountains.
Located in Clark County close to the southern tip of Southern Nevada, Las Vegas Valley was once a sparsely populated basin of ranches and railroads until it transformed into a popular resort city for the well-heeled in the early 20th century. It sits on 600 square miles and currently encompasses three cities (North Las Vegas, Las Vegas, Henderson) and seven unincorporated communities (Enterprise, Paradise, Spring Valley, Summerlin South, Sunrise Manor, Whitney, and Winchester).
Today, Las Vegas Valley enjoys being one of the wealthiest metropolitan areas in the United States. It is not only a dining, retail, shopping, and tourist destination, but also an outdoor recreation paradise where residents can hike, bike, and go horseback riding on canyon trails or stay close to home and spend a day on the greens, at the tennis court, or in the clubhouse spa.
Las Vegas Valley real estate market
Local and out-of-state buyers alike vie for real estate in Las Vegas Valley. The area receives more than 300 days of sunshine, guaranteeing pleasant living for most of the year. Winters are mild and the desert heat can be scorching for only three months of the year.
Out-of-towners from states such as California and Oregon flock to the Valley for affordable real estate, the absence of a state income tax, and low property taxes. The cost of living here is often significantly lower for Californians and Oregonians. Buyers from California, for instance, make up nearly a third of all buyers in Las Vegas’ luxury home segment. Many are motivated by the desire for space and are driven by changing circumstances in their home state caused by recently enacted state policies.
Despite the pandemic, Las Vegas Valley’s current real estate market climate points to promising and positive developments. With Southern Nevada’s economic recovery currently on an upswing, no slowdown is expected for the valley’s 2021 housing market. The housing boom seen in mid-2020 is expected to continue through most of 2021. In December 2020, the year-on-year price of Las Vegas Valley single-family homes increased by about 10%; forecasts for 2021 point to an 8% increase in home values here.
High demand and low supply make Las Vegas Valley a hot sellers’ market. Most listings here stay active on the market for only four weeks at a time. This environment drives listing and sale prices higher. This trend is particularly pronounced in the luxury home segment, where performance has been outstanding. Buyers not fazed by the higher prices because rock-bottom interest rates are opening up opportunities at price points that were previously out of range.
Luxury properties in Las Vegas
Renowned addresses, amazing views, and exclusive dining, retail, and recreation are among the built-in benefits that come with owning luxury real estate in Las Vegas. There are a variety of luxury condominiums and apartments available, but the market for single-family homes offers the best combinations in terms of amenities and home features.
Often built on spacious lots, luxury homes in Las Vegas Valley have multiple bedrooms (typically four or more), spa-style bathrooms with a soaking tub and sauna, recreation rooms, executive kitchens, and indoor/outdoor living spaces. A closer look at fixtures and finishes draws up a list of opulent materials like exotic hardwoods, antiques, granite, travertine, onyx, and marble.
Homes on the higher end of luxury also contain infinity-edge pools, smart features and security, wine cellars, and casitas that are regularly converted into private guest suites, entertainment dens, and dedicated office spaces.
The city of Las Vegas and its world-class destinations and amenities provide the largest influence in amplifying the luxurious appeal of the valley’s real estate. When the world’s best cosmopolitan offerings are as easy to reach as the serene desert and mountains, the luxury meter rises by several notches.
Prestigious Las Vegas neighborhoods
The City of Las Vegas is Southern Nevada’s economic epicenter. Its reputation as a resort city with superior shopping, fine dining, and entertainment options paved the way for development in the surrounding area. Strong industries in the Las Vegas Valley include retail and industry, while strong growth is seen in healthcare, finance, and technology.
A variety of master-planned communities have been developed to support the many opportunities that keep locals in place and outsiders coming. Some of the most exclusive luxury living in the country can be found in these prestigious neighborhoods.
Anthem Country Club
Located in the city of Henderson, Anthem Country Club is a private, master-planned neighborhood with a welcoming atmosphere that is perfect for families. The community is gated and patrolled by 24-hour security and is also close to highly ranked public and private schools in the area.
Just 15 minutes away from the Las Vegas Strip, Anthem is close enough for convenient access, and also far enough so that residents can enjoy the peace and quiet of its desert landscape. Residents are well-acquainted with great views of the Las Vegas Strip and Black Mountain.
There is a wide variety of custom, semi-custom, and single-story homes in the neighborhood, and all of them have easy access to the 7,267-yard Anthem Highlands Golf Course, community walking trails, and a clubhouse with a fitness center, tennis courts, and a pool.
Country Club Hills
This 24-hour guard-gated community in Summerlin is the place to find when locating some of the most exclusive homes in the Las Vegas Valley. Surrounded by the Tournament Players Club (TPC) golf course, the community is best described as picturesque. Its streets and gardens boast beautiful landscaping. It is full of parks and walking and hiking trails. Most homes here were built by legendary Las Vegas luxury home builder, Christopher Built Homes.
A significant part of the appeal of living in Country Club Hills is cultural access. The community is close to great schools, as well as to several venues like the Summerlin Library and Performing Arts Center and the Nevada Ballet Theatre.
MacDonald Highlands
A premium lifestyle awaits buyers and their families in MacDonald Highlands. This 1,200-acre guard-gated community in Henderson boasts luxury amenities as well as stunning views of the Las Vegas Strip and Black Mountain. Community amenities include access to the DragonRidge Country Club, which has a challenging 18-hole championship golf course, and a 14,000-square-foot fitness center with a gym, five tennis courts, several dining options, and childcare facilities.
The neighborhood’s contemporary custom homes dot the foothills of the McCullough Range. This proximity to nature affords it a wealth of natural walking and hiking trails, but Downtown Las Vegas and the Strip are still just about 15 miles away. Many homes here have resort-style backyards that offer their owners a secluded retreat. The community as a whole places a great value on privacy.
Red Rock Country Club
This well-guarded and upscale gated community in Summerlin sits on 738 acres of beautiful mountain terrain. The community includes about 1,000 single-family homes, mostly built by Sunrise Colony Co. and Toll Brothers. Known for its rural and friendly atmosphere, Red Rock Country Club is the ideal neighborhood for families and buyers with active lifestyles.
Residents in the community have access to a wealth of amenities, such as a 44-square-foot clubhouse, two 18-hole courses, swimming pools, a spa, and childcare facilities. Homes in the community are relatively affordable and enjoy views of Red Rock Canyon, Spring Mountains, the Las Vegas Strip, and the Arroyo Golf Club greens.
The Ridges
At 4,000 feet above sea level, The Ridges stakes claim over the highest points of Summerlin. This 800-acre gated community enjoys cool temperatures and breathtaking, unobstructed panoramas of the Las Vegas Valley below.
As one of the most expensive and exclusive communities in Western Las Vegas, it comprises seven neighborhoods with 450 custom luxury homes and another 4 with high-end production ones. Most homes in The Ridges were built in 2000 and later, and the community follows unique construction guidelines — such as mandating low-intensity lights — that preserve the natural flora and wildlife. As a result of this initiative, it’s common to spot jackrabbits, tortoises, and the occasional coyote roaming the community’s premises. To further complement these guidelines, homes with the clean lines and earthy tones of desert-contemporary architecture abound and, at times, blend into the surrounding landscape.
Aside from beautiful views and pristine nature, The Ridges is an easy commute to several high-ranking public and private schools in Las Vegas. It also offers premium amenities to Club Ridges and to one of the top golf courses in the valley, Bear’s Best Las Vegas.
The Summit Club
The Summit Club is an ultra-luxury golf course community in Summerlin. Developed by Howard Hughes Corp. and Discovery Land Co., this guard-gated community covers 555 acres of land close to the Red Rock Canyon National Conservation Area. Moreover, it is only nine miles away from the Las Vegas Strip.
The community contains around 260 homes (most of which are built in the mid-century modern style), a variety of family-friendly amenities, and an 18-hole golf course designed by Tom Fazio. The value of lots in this neighborhood starts at above $3 million. For the price of investing in property here, buyers can access the community’s concierge services, which ranges from grocery shopping to housekeeping.
Tournament Hills
Home to some of the country’s extremely well-off individuals, Tournament Hills is a master-planned community in the area around TPC Summerlin. Its other claim to fame is that it has drawn the likes of former presidents and Hall of Fame athletes to its community.
Populated by spacious lots that offer their owners plenty of privacy, the community is made up of about 130 homes on acre lots that range from 3,528 square feet to more than 21,000 square feet. Most homes in Tournament Hills have Old-World designs, though there is a handful built in a contemporary style. Many offer amazing views of the TPC greens, the mountainside, and the Las Vegas Strip.
Tips for investing in Las Vegas luxury real estate
Homebuyers and investors can experience long-term returns on their investment in the Las Vegas Valley. Property values in the past ten years alone have appreciated at a rate of over 100%. In addition, the area’s rental market is immense, since about 40% of its population rents.
An investment here can be a valuable asset portfolio addition for buyers interested in single-family home rentals.
The rise of the valley’s population, a welcoming tax environment, and a strong economic resurgence have encouraged individuals and companies to move to the area, guaranteeing constant housing demand. Forward-thinking investors are already examining the potential of developing rental properties near new businesses.
Since the luxury market is niche and requires intricate knowledge of the local market and its network, buyers can facilitate investment in luxury Las Vegas real estate by focusing on the following aspects:
Financing
Since investing in luxury real estate requires large sums of money, investors should prepare for a high level of financial scrutiny. Many lenders will want extensive evidence of the buyer’s income and available cash.
Even though many luxury homes are bought in cash, the currently low interest rate climate makes jumbo loans an attractive financing option for buyers who can prove impeccable credit standing and make a substantial down payment.
Expert assistance
Privacy and discretion are mainstays of the luxury real estate market. Many luxury homes never list and are, instead, bought and sold off-market. An experienced real estate agent who specializes in luxury homes offers valuable service to a buyer during key stages of the buying process. They allow the buyer to make informed decisions by:
- Tapping their network of luxury real estate agents to facilitate the search for a luxury home,
- Making use of extensive local market knowledge to guide buyers toward the right communities,
- Getting comparables from similar properties to assist in crafting an adequate offer,
- Negotiating on the buyer’s behalf, and
- Filing all the paperwork necessary for a proper closing.
Due diligence
Luxury homes are highly individual, which makes finding the right price for them slightly more complex. Buyers should consider if:
- The home reflects their individual tastes and lifestyle
- They have paid sufficient attention to features that cannot be remodeled, such as views, location within the neighborhood, and proximity to amenities
Overall, luxury homes have fewer maintenance issues than regular single-family homes, but care should still be taken to confirm that maintenance was kept up and there is no structural damage. Much unlike regular homes, the reputation of the home’s architect or designer places a heavier weight on the home’s sale price and future appreciation.
Investment strategies
There are several popular ways to enter luxury real estate in Las Vegas Valley with long-term profits in mind: mansion flipping, vacation rentals, and long-term rentals.
Flipping a luxury home is the riskiest option of the three. But, when successful, it can lead to enormous profit. The first step of this route involves choosing a home with potential, determined by factors like the price, condition, and location. This type of investment is usually financed with a hard money loan. Since the flipping process usually takes up a period of one year or less, the short time frame offsets the riskier conditions of the loan.
Vacation, or short-term, rentals are a growing market and an investment opportunity in Las Vegas Valley. There are local ordinances that set specific guidelines for operating these rental properties but the main challenge for this investment route is posed by the potential extension of the COVID-19 pandemic. Investors who opt for this route should consider catering to seasonal clients who can occupy a home or apartment for several months at a time.
Long-term rentals continue to be the most stable start in luxury real estate investment. Landlords enjoy several benefits, most notably, the absence of mandatory interest payments on tenant deposits and a trend of increasing rent prices (driven by strong housing demand).
For both short- and long-term rentals, investors should factor in the costs of maintenance and property management. They should also consider the property’s location, amenities, and the lifestyle and atmosphere of the community where the property is located.
A luxury home in a world-class location
Invest in a luxury home in one of Las Vegas Valley’s highly exclusive communities with the Dream Homes Specialist, Gavin Ernstone. As a luxury home agent who specializes in high-value homes and sells more than $100 million annually, Gavin uses his more than 25 years of experience selling in Las Vegas Valley to offer his clientele the level of personal service and attention they deserve. Get in touch with him today at (702) 523-3677 or [email protected].