Buying A House In Las Vegas: What To Know And Where To Look

Many people predicted Las Vegas would face a housing crisis during and after the pandemic, but the complete opposite has happened.

Believe it or not, buying a house in Las Vegas can be one of the best investments you make. With its low cost of living, exciting nightlife, incredible scenery and rock-bottom taxes, it’s easy to see why millions of residents call Sin City home.

Are you ready to move to Las Vegas, too? Here’s everything you need to know about buying a home in Las Vegas.

Why Should You Buy A House In Las Vegas?

Las Vegas, Nevada, is more than its Sin City moniker. It’s one of the least expensive places to live, and it has some of the most breathtaking views. You’ll find plenty of housing styles to suit many tastes, and you’ll love the low taxes.

Entertainment And Adventure

You already know Las Vegas for the Strip and its downtown. Whether you’ve visited or not, it’s the most prominent part of the area. There’s always entertainment available if you love nightlife or gambling. Even if you aren’t the gambling type, there are world-class restaurants and shopping at your disposal, many of which are open 24/7.

But that’s not all. Las Vegas also has plenty of museums and family-friendly attractions and easy access to the great outdoors. Hiking, fishing, photography, skiing and taking in the wildlife are just a handful of activities you can enjoy in and around Las Vegas. The Grand Canyon is less than 300 miles away from the Strip, making it a great day trip to one of the best natural wonders in the United States.

Low Taxes

Nevada has some of the lowest property tax rates in the country with a state average property tax rate of .55%. Clark County’s average property tax rate is 0.64%, slightly higher than the state average, but still well below the national average property tax rate of 1.08%.

The Nevada State Legislature also passed a law to shield property owners from large increases in property tax expenses. The tax abatement law restricts annual increases in property tax dues to a maximum of 3% for homeowners. Although the sales tax rate is high at 8.375%, groceries, prescriptions, medical devices and services are exempt. Nevada also doesn’t have an individual income tax. For many, these favorable tax regulations make buying a home in Las Vegas a safe bet.

Home Prices

Home prices vary throughout Las Vegas, but you can find homes for sale at almost any price point. Depending on where you look, you can find homes from $100,000 to millions of dollars. Affordable home prices combined with the low cost of living in Las Vegas make it easier to buy a nicer house or condo without straining your budget.

Top 5 Neighborhoods In Las Vegas

Finding the best place to buy a house in Las Vegas, Nevada, isn’t so hard because there are many great communities to live in. Here are the top five neighborhoods to consider:

1. The Strip

Located in Clark County, the Strip is the entertainment capital of Las Vegas. With 24/7 activity and plenty to do, it’s no wonder people want to live here. Clark County has a population of 2.3 million, which is a nice majority of the people in Nevada, with a total population of 3.1 million.

Most people living near the Strip are 25 – 55 years old and have a median household income of $64,000. There are 843,000 households throughout Clark County, and it’s easy to see why.

The Las Vegas Strip has it all: Entertainment, shopping, world-class restaurants and 205 days of sunshine to enjoy.

Las Vegas Real Estate Listings

Las Vegas Trend Report

2. North Las Vegas

North Las Vegas has an estimated 250,000 residents and is one of the top five largest cities in Nevada. The average resident is around 32 years old. The average income is $72,000. And the average home costs around $233,000.

If buying a house near the Las Vegas Strip isn’t your idea of fun, consider North Las Vegas. It’s quieter than the Strip, has great schools, culture and plenty of recreational activities for families. But if you’re ever in the mood to enjoy some nightlife, North Las Vegas is a short drive from the Strip.

North Las Vegas Real Estate Listings

North Las Vegas Trend Report

3. Henderson

If the hustle and bustle of the Strip isn’t what you’re looking for, Henderson is a great place to settle. With a population of just 300,000 people, it’s quieter and just as beautiful.

Henderson is 106 square miles, but its median household income is much higher than Nevada’s average. The average household in Henderson brings in $84,000 a year. And Henderson homeowners are typically between 30 and 59 years old.

Henderson has over 50 amazing parks, which may be how it earned its nickname: Tree City USA. Henderson also has some of the highest-rated schools in the area.

Henderson Real Estate Listings

Henderson Trend Report

4. Summerlin

If you’re looking for a master-planned community, look no further than Summerlin. Some of the country's top home builders were a part of this amazing community. It’s filled with shopping and dining options, and there is always something to do.

Summerlin has a population of around 46,000 people, with about 18,000 homes in the area. The average household income is $82,000, and the average homeowner is in their mid-40s. Summerlin is surrounded by the Spring Mountains and Red Rock Canyon.

Summerlin Real Estate Listings

Summerlin Trend Report

5. Centennial Hills

If you want a place with a lot of land or are interested in wide-open landscape, Centennial Hills is the perfect place. Centennial Hills has approximately 51,000 residents and is about 12 square miles in size. All homes have an incredible view of the mountains, and it’s quieter than areas near the Strip or downtown.

You can find homes in Centennial Hills at all price points, but the average home costs around $250,000. Families with young children and outdoorsy types love the attractions Centennial Hills offers, including the Las Vegas Farm and Floyd Lamb State Park.

Centennial Hills is also minutes away from Summerlin and North Las Vegas, so there is plenty to do within a short drive.

Centennial Hills Real Estate Listings

Centennial Hills Trend Report

What To Know About Buying A Home In Las Vegas

Knowing how to buy a house in Las Vegas is important. To increase your chances of winning in a seller’s market and today’s competitive housing market, you need to establish a firm budget, figure out where you want to live and be ready to make an offer as soon as you find a house you like.

Here’s what you need to know about the Las Vegas real estate market to buy a home with confidence:

Median House Price

With the median price for a house around $307,500, buyers would need $61,500 for a 20% down payment. With a 6% interest rate, homeowners would pay $1,474 in principal and interest for the mortgage payment.

Unless you are trying to avoid paying mortgage insurance, most loan programs don’t require a 20% down payment.

Closing Costs In Nevada

Closing costs – which range from 3% – 6% of your total loan amount – are a major expense and usually the second largest expense after the down payment.

While each closing differs, the typical Nevada home buyer pays the following closing costs:

●      Home appraisal fee

●      Lender closing fee

●      Credit report fee

●      Origination fee

●      Attorney fee

●      Recording fee

●      Flood certification

In addition, all borrowers pay:

●      Prepaid interest for the days left in the month after closing

●      Prorated real estate taxes

●      12 months of homeowners insurance

●      Mortgage insurance (if applicable)

Property Taxes

Las Vegas property taxes are paid in four installments and are usually due in August, October, January and March.

Tax rates vary based on where you live in Clark County, but homeowners typically pay between 2.5% – 3.4% in property taxes. Homeowners who live in their homes may even qualify for an abatement. An abatement may save you as much as $18 for every $1,000 of your home’s value.

Solar Panels

Even though Las Vegas ranks low in average electricity costs, it still pays to take advantage of solar panels and free energy.

Solar panels are a great way to reduce the energy you use, and with 205 days of Las Vegas sun, you’ll get a lot of natural energy in your home. Solar panels usually last up to 25 years. They will likely last your entire stay in the home or close to it.

Homes already outfitted with solar panels may be pricier because of the value they offer. But before you balk at the steeper price tag, remember the benefit of solar panels and the savings you’ll see in your energy bills.

Traffic And Crime

Las Vegas has a relatively high crime rate, ranking safer than only 12% of U.S. cities. It has a higher crime rate than similarly sized cities, which you should keep in mind, especially if you have young children or are close to retirement.

Las Vegas also ranks fairly high for traffic rates in the U.S. It ranks about 600 out of 900 top U.S. cities. Las Vegas streets are most congested in the mornings from 7:00 a.m. to 9:00 a.m. and again in the evenings between 4:00 p.m. and 6:00 p.m.

Requirements For Buying A House In Las Vegas

Before you can buy a house in Las Vegas, you’ll likely need to apply for a mortgage, and that means meeting a lender’s minimum requirements. Most lenders require a good credit score and a 3% – 6% down payment. But don’t forget that you’ll pay 3% – 6% in closing costs, too.

Home buyers have a few options to finance their home purchase, including:

• Conventional loans: If you have at least a 620 credit score and a debt-to-income ratio (DTI)  under 50%, you may be a candidate for a conventional loan. Conventional loans have low interest rates and only require private mortgage insurance (PMI) until you owe less than 80% of the home’s value.
• Federal Housing Administration (FHA) loans: If you have less-than-ideal credit, FHA loans are a good alternative. FHA loans require at least a 3.5% down payment if a borrower has a 580 credit score or higher. You’ll also need to provide the lender with 2 years’ worth of employment history. You’ll pay mortgage insurance, but at 0.85% of the outstanding principal balance, it typically costs less than PMI on conventional loans.
• Department of Veterans Affairs (VA) loans: If you’re a qualified military veteran or active-duty service member, take advantage of a 0% down VA loan. You need at least a 580 credit score, and a VA loan allows for a max DTI ratio of 50%. As long as this is the first home you’re buying with your VA benefit or you sold a home and reinstated your benefit, you can use your VA loan to buy a home in Vegas.

No matter which loan you choose, all lenders require documentation of work history for the past 2 years and proof of income to verify whether you can afford the loan. With a stable credit history and proven ability to afford and pay your bills, including your new monthly mortgage payments, you’ll be on your way to owning a home in Las Vegas.

FAQs On Buying A Home In Las Vegas

Let’s look at some frequently asked questions about buying a home in Las Vegas.

When should you buy a house in Las Vegas?

The real estate market is always subject to change, but the optimal time to buy a house in Las Vegas is usually around wintertime because home prices drop. According to our latest housing report, it’s still a seller’s market in Las Vegas, so there’s a lot of competition for homes. Keep your eye on market trends and use that information to help decide when to enter the housing market.

Does Nevada have a first-time home buyer program?

Yes, Nevada has several down payment or closing cost assistance programs for first-time home buyers. The state offers specialized grants and loan programs, including zero-interest and deferred payment loans, and other types of assistance.

To qualify for first-time home buyer assistance, you must meet the basic requirements, including:

• A minimum credit score of 640
• Meet the income and purchase price limits for your county
• Complete a home buyer education course

The Bottom Line: Set Yourself Up For Success To Buy A House In Lively Las Vegas

Whether you want to delight in the hustle and bustle of the Las Vegas Strip or enjoy the peace and quiet of a neighborhood outside the area, there’s a home waiting for you in Vegas.

A reputable real estate agent can help you navigate the home buying process from start to finish. Work with a Rocket Homes^SM Verified Partner Agent and benefit from their expertise and experience to buy your dream home.