When it comes to luxury living, few can rival the glamorous lifestyle tha t Las Vegas is known for. Its name alone brings to mind brilliant chandeliers, world-class entertainment, and of course, slot machines and card tables in the city’s most popular casinos.
Though Las Vegas is famous for its luxurious attractions, heart-pumping entertainment, and top-rated restaurants, the city also offers a lot of tranquil outdoor destinations where you can simply unwind and relax. All these and more are drawing homebuyers into the booming Las Vegas luxury real estate market.
Before you start daydreaming about your new life in Las Vegas, it helps to have an idea of what the local real estate market looks like right now. Take a look at some of the important facts and figures we collected from experts.
What is the state of the Las Vegas luxury real estate market?
Even amid the pandemic, a lot of buyers continued to show interest in Las Vegas luxury real estate properties. In fact, the year 2021 saw a record number of luxury homes sold priced at over $1 million – 1,557 homes to be exact. This is around twice the number recorded in 2020, and triple the number of luxury homes sold back in 2018.
This momentum is expected to pick up before 2022 ends. During the first six months of the year, the number of closed luxury homes priced $1 million and up increased by 16% compared to the same period last year. Amid fears of a recession, and even as interest rates rose during the second quarter, sales of new luxury homes went up: there were 134 luxury homes closed from April to June, which was higher compared to the 101 closings of luxury homes from January to March, and 112 from the second quarter of 2021.
Builders and real estate experts, however, are expecting a bit of a slowdown from July to August. For them, this is not a cause for concern because luxury home sales are historically slow during the summer, and buyers are not keen on visiting Las Vegas properties during the hot summer days.
Still, the Las Vegas real estate market has reached the point where builders are compelled to develop new luxury homes and keep up with the rising demand. This trend, in turn, is causing the threshold on luxury home prices to rise year on year. Back in 2018, an entry-level luxury home would cost you around $750,000. Now, the same property would cost around $2 million. If the demand for luxury homes continues to be strong, the price threshold for entry-level properties could even go beyond $2 million.
A new sector: ultra-luxury homes
There are luxury homes, and then there are ultra-luxury homes that dare to redefine your idea of a glamorous lifestyle. These properties, which are often priced above $5 million, are inspired by European architecture and offer a unique spin to the Las Vegas lifestyle.
One such ultra-luxury property is the Lake Las Vegas estate called Palazzo Di Lago, a 10,000-square-foot, three-story residence with 5 bedrooms and amenities fit for royalty. These include 11 fully automated bathrooms, a private elevator, a wine cellar, a sauna, and a state-of-the-art home theater. You have the option to dine at the outdoor kitchen and spend your free time wading at the private pool.
Those chasing an equestrian lifestyle can check out another 8,000-square-foot property in Las Vegas with a hacienda-inspired home, a 60-foot round pen for training, and lots of open space for horse pastures. It also has direct private access to the Lone Mountain Equestrian Park and Trail, allowing you to literally ride off into the sunset.
If you think you have seen luxury properties in Las Vegas, these ultra-luxury homes are here to prove you wrong. Ultra luxury homes are a growing sector in Las Vegas luxury real estate, so you can expect more of this type of property to crop up in listings in the next few years.
Celebrities and athletes in Las Vegas luxury real estate deals
Even celebrities and athletes are entering the Las Vegas luxury real estate market. Last March, it was reported that the 8,684 square foot property, which was once the home of former Las Vegas Raiders head coach Jon Gruden, went on sale, and final talks with an undisclosed buyer were underway. The final sales price for this two-story luxury property with an adjacent lot remains unknown, though it was previously listed for $7.5 million.
There was also buzz when Davante Adams, Green Bay Packers’ former wide receiver, was rumored to have purchased a luxury home in The Ridges. It was said that the supposed 10,609-square-foot property was built in 2021, with a swimming pool, an 8-car garage, and a luxury tub in the primary bedroom. Adams reportedly bought the property for around $12 million, which was given credence because Adams was traded to the Las Vegas Raiders in March.
Meanwhile, Gene Simmons of the band Kiss was supposed to close a $14.95 million deal for his Henderson home and lot before it fell through in early 2022. The listing agent handling Simmons’ property said that buyers showed “tremendous interest” when the rock star’s house went back on the market. According to her, multiple showings were scheduled not just for Simmons’ house, but for other luxury listings as well.
What is causing all these?
What is pushing homebuyers into the Las Vegas luxury real estate market? One probable reason is that the pandemic allowed homebuyers to reevaluate the way they perceived their homes as more than just living spaces. Today, homebuyers are looking for multifunctional properties that can combine work, play, and rest. Luxury homes now offer all these and more: a quiet office space for work, a playroom for kids, and a roomy living area where the family can get together and bond, plus enough extra space for all sorts of whims and wishes.
It also helps that Las Vegas, despite all the glitz and glamor of its hotels and casinos, is actually one of the most affordable places to live. For one, Nevada does not impose an income tax. Other fees, such as withdrawals from retirement accounts, social security, and public and private pensions are also untaxed. Property taxes, meanwhile, are at a reasonable rate.
These tax perks are perhaps the biggest draw for residents of the neighboring state of California. In the past few years, there has been a spike in the migration numbers of Californians moving to Nevada, particularly in Las Vegas.
Though people in California began their move to Las Vegas in 2018, the pandemic exacerbated the exodus. The absence of an income tax is only part of the reason Californians have opted for Nevada. The Golden State’s proposed Wealth Tax and the Exit Tax have not been incentives to stay, either.
Is it a good time to invest in a Las Vegas luxury real estate property?
Things are looking up in the Las Vegas luxury real estate market, and now is the time to strike while the iron is hot. Demand for luxury properties in Las Vegas will continue to rise in the next few months, and the competition will only heat up unless builders can fast track the preselling or development of new properties to compensate for the low inventory.
Here are some of the reasons why this year is the best time to find a luxury home in Las Vegas.
Wealthy international buyers may begin looking at properties in Las Vegas
Las Vegas is not always the first choice among wealthy foreigners, since they’ve always set their sights on places like San Francisco, New York, and Seattle. However, recent trends in the Las Vegas luxury real estate market may attract wealthy overseas investors. With the market’s low inventory putting a premium on listed luxury properties, these international buyers just might consider Las Vegas an ideal location for their real estate investment.
Second homes and high-rise condos may be in demand again
With life slowly returning to normal, seasoned real estate investors may begin looking at second homes once again. As house prices continue to rise, real estate experts are expecting the demand for second homes to increase as well. Those who are finding it difficult to navigate through the competitive luxury home market, meanwhile, would do well to set their sights on high-rise condos. First-time homebuyers and millennials should check out their options because condos aren’t as scarce as single-family homes.
It could take a while for new luxury homes to become available
Hobbled by delays due to post-pandemic labor shortages; price increases in building materials such as lumber, concrete, and tile; and geopolitical issues affecting logistics and delivery, builders face longer timelines in bringing new luxury homes to market. However, this doesn't seem to faze buyers and investors. If anything, the current low inventory of luxury properties seem to only increase the demand for new and turnkey properties in Las Vegas. Some sellers could even use this opportunity to renovate their homes and sell their properties while house prices remain high.
Exciting developments are on the way
Las Vegas is not known as the “Entertainment Capital of the World” for nothing: tourists all over the world are dazzled by the city’s endless options for entertainment, from top-tier casinos to five-star restaurants. Now, upcoming local development projects are about to make the city shine even brighter. Plans to reinvigorate the once-dull North Strip are underway, with developments led by Resorts World Las Vegas and Fontainebleau Las Vegas set to open to the public in 2023. These projects are expected to make the area a prime and high-demand real estate location.
The benefits of investing in luxury real estate
A recently sold home in Las Vegas's Summerlin South
Investing in regular real estate can be intimidating for some people, let alone investing in a luxury home. But before you dismiss the idea of owning a luxury home – in Las Vegas of all places – here are some of the reasons why it is the better choice for a real estate investment.
Your imagination is the limit for customization
Other homes have limits when it comes to customization, and owners should always be mindful of their renovations and how they will affect the neighborhood. With luxury homes, however, you are in total control of how you want your property to look. You can extend the house or install tech enhancements to achieve your dream home.
You can make the most out of the luxurious amenities
Luxury homes in Las Vegas often come with a wealth of amenities, such as a pool and an outdoor kitchen. Even better, some are equipped with the latest smart home and security systems that can take the home-owning experience to the next level. Imagine having a home that can automatically take care of mundane functions, secure your home, adjust the indoor temperature, and alert you if anything is amiss. Now that is something a typical home cannot offer.
It is the perfect place to start a family
Finding a place with ample space for a growing family is a common concern among homebuyers. Owning a luxury home can give you all the living space that you need and more. Turn bonus rooms into a home theater, a man cave, or a reading nook. Compared to simply moving from one house to a slightly bigger one, buying a spacious luxury home is better in the long run.
It is a stable investment
Compared to the stock market, the real estate market is known to be more stable and less volatile. With real estate, you have some control over the value of your property, which you can enhance by making improvements. As mentioned earlier, the value of luxury real estate in Las Vegas is on the rise. If this trend continues in the next few years, you are bound to get a better ROI from your property, especially if you choose one in an in-demand location.
You can turn a profit by flipping it
If you are up for it, you can make a profit out of your luxury purchase. By flipping it – renovate and sell at a higher price. Another is to rent it out and offer short-term stays for tourists or longer stays for tenants. Either way, your luxury purchase can result in higher returns, but only if you know how the Las Vegas luxury real estate market works.
It is a source of pride and status
Let’s be honest: being the owner of a luxury home elevates your status almost immediately. There is pride in saying that you own a luxury real estate property in Las Vegas. After all, investing in a luxury home is the culmination of your hard work, the tangible proof of your perseverance and smarts. You will be the envy of your peers.
Be the owner of a Las Vegas luxury real estate property with the help of Gavin Ernstone!
Buying a luxury home is different from buying a regular home, and it is not just because of the price difference. As luxury real estate comes with its own nuances, gain an edge over the competition by partnering with an expert who knows this segment of the market from the inside out.
That is why you will need Gavin Ernstone, the Dream Homes Specialist with over 25 years of experience in the luxury real estate market in Las Vegas. You can count on him to bring you closer to living in your dream home in this renowned resort city.
Gavin’s portfolio includes some of the most coveted properties in communities like The Ridges, Red Rock Country Club, Macdonald Highlands, Anthem Country Club, Southern Highlands, Ascaya, The Summit Club, Seven Hills, and Summerlin.
Throughout his career, Gavin has managed to sell multi-million dollar homes in some of the top neighborhoods in Las Vegas, despite the tight competition in the luxury real estate market. As such, Gavin has earned a stellar reputation among buyers in the area.
You can be assured that all your needs will be taken care of because of Gavin’s dedication to delivering unmatched levels of service. He will focus on getting to know you and try to understand the things that matter to you when it comes to your investment.