Homes are flooding onto the market in Las Vegas as retirees flee the city and investors cash out

By Joy Dumandan

Realtor.com

New home listings continue to flood the market, giving buyers more options than this time last year — and Las Vegas leads the pack.

Across the United States, newly listed homes increased 6.2 percent from last June, according to the Realtor.com® June Monthly Housing Report. Las Vegas experienced the sharpest increase in housing inventory, with a 77.6 percent increase year-over-year.

Robert Little, who has been selling real estate since 2007, has seen many changes in the region over the years. He says that buyer demand in the area has mostly cooled due to higher interest rates.

“Additionally, many people relocating to Las Vegas are having difficulty selling their homes in other markets, which delays or prevents their ability to purchase here — further slowing down local activity,” he tells Realtor.com.

Overall, housing inventory increased in all four regions with the greatest growth in home inventory found in the West (+38.3 percent), followed by the South (+29.4 percent), Midwest (+21.3 percent), and Northeast (+17.6 percent).

A mix of sellers make up the Las Vegas market

Little says there are a mix of sellers entering the market at the moment.

“A significant number are retirees choosing to move closer to family, seek out cooler summer climates, or transition into assisted living communities. Some older homeowners are also selling to live with relatives who can provide support,” he says.

“At the same time, many investors who purchased properties at lower prices in previous years are now choosing to cash out and reallocate their funds into other opportunities.”

The fresh data from Realtor.com reveals new listings peaked in April and have declined in each of the last two months — a sign that listing momentum is slowing as “potential sellers pull back from the market.”

“The increase in home listings is largely due to a slowdown in buyer demand, driven by high interest rates that have impacted affordability,” Little says.

But he explains his clients are adjusting with some sellers altering expectations, offering concessions like closing cost assistance, or being open to price negotiations.

“Others are holding firm on price, anticipating market conditions to improve,” Little says. “We’re also seeing some price reductions from motivated sellers who understand the importance of staying competitive in a shifting market.”

Las Vegas’ inventory increase isn’t isolated. Washington, D.C., saw (+63.6 percent) growth in inventory in June compared with a year ago. Raleigh, NC, (+56.4 percent) follows right behind. Across the U.S., the number of active inventory was over 1 million for the second consecutive month.

Market roulette

The allure of the Las Vegas Strip is what the city is known for. Casinos generate billions of dollars in revenue boosting the city’s economy, but the cash hasn’t been flowing as in the past.

The Nevada Gaming Control Board’s 2024 fiscal year report revealed a record $31.5 billion in revenue overall, but net income dropped 24.4 percent, including a 40.4 percent drop on the Las Vegas Strip.

The total revenue is defined by the money spent by patrons on gaming, rooms, food, beverage, and other attractions. Net income is what casinos make after expenses have been paid, but before deducting federal income taxes and accounting for extraordinary expenses.

The gaming slowdown doesn’t appear to be the main factor causing more homes to sit longer, Little says.

“The Las Vegas gaming market fluctuations have not significantly impacted our home prices,” Little explains. “Las Vegas has evolved into a more diversified economy over the years and is no longer solely dependent on gaming.

“We haven’t seen a major wave of sales from casino workers. In fact, our housing market has remained relatively resilient compared to other parts of the country.”

The median list price for the Las Vegas-Henderson-North Vegas metro is $479,988 for June, according to Realtor.com data.

Little adds, “While months of available inventory did increase by 12.8 percent, we’re still at a 3.6-month supply — technically still a seller’s market.

“Las Vegas continues to attract buyers thanks to its favorable tax structure, desirable climate, and strong lifestyle amenities,” Little says. “When national conditions improve, particularly interest rates, Las Vegas is well-positioned to see another surge in appreciation.”

Joy Dumandan is an Emmy-winning journalist who is the news editor at Realtor.com. Previously, she was the consumer editor at The U.S. Sun. Joy spent a majority of her career as a broadcast journalist. At Boston 25 News, she covered major news stories, including the college admissions scandal, presidential elections, and deadly severe weather. While at WISH-TV in Indianapolis, Joy was the morning anchor and reported live on location at events like the Super Bowl, the Indianapolis 500, and NCAA March Madness.