In the January Zonda Market Ranking, the metro area was significantly overperforming compared with its long-term historical average. Home builders are ramping up new construction, and starts activity has improved over the past six months.<\/p>\n\n\n
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<\/a>Stabilizing construction costs and improving supply chains have been positive factors. The lack of skilled workers continues to be a hurdle but has also improved compared with 2022. Tight existing-home supply continues to drive greater demand for new homes, accounting for 25% of total closings.<\/p>\n\n\n\n
Strengths<\/h3>\n\n\n\n
A $3 billion federal grant will support the development of a high-speed rail line, cutting travel time between Las Vegas and Southern California<\/a> to around two hours. In addition to the jobs created, the bullet train will boost the Las Vegas tourism economy.<\/p>\n\n\n\n There has been a boom in warehouses with roughly 54 million square feet coming online over the next few years. While Las Vegas’ prominence as a national distribution center and increased economic diversity is a plus, the lower-paying jobs are of limited benefit.<\/p>\n\n\n\n Quarterly housing starts increased 49.3% over a year ago, while the number of available vacant developed lots sits at 10,545, up 6.8% over the same quarter last year. In terms of supply\/demand balance, the market area is 8.82% undersupplied.<\/p>\n\n\n\n New-home sales in the Las Vegas-Henderson-Paradise metropolitan area increased 41.6% year over year to an annualized rate of 11,303 units in February. Existing-home closings for the 12-month period ending in January posted a year-over-year decline of 24.9% to an annualized rate of 30,608 units.<\/p>\n\n\n\n The average list price for a new detached home in the Las Vegas region increased 10.7% from 2023 to $569,685 in February, while the average list price for a new attached home increased 4.8% over the same period to $407,372. Homes priced over $550,000 experienced the most closing activity over the past year. The new-home affordability ratio for a detached home reached 24.9% in January.<\/p>\n\n\n\n Total nonfarm employment in the area increased 4.1% from the same period last year to 1,154,100 payrolls in December, with approximately 800 more jobs compared with the previous month. The local unemployment rate remained flat at 5.7% in December compared with 5.7% in November. December’s jobless rate is lower than it was this time last year when it stood at 6%. Zonda forecasts the region’s unemployment rate will finish the year at 5.3%.<\/p>\n\n\n\n The population for the metropolitan area is approximately 2,399,040 people and is projected to increase by 2% in 2024. There are approximately 936,950 households in the region, which is up 2.7% year over year. Forecasts show that current household formation is expected to increase by an annual growth rate of 3.4% for 2028. Incomes increased by 3.4% from the previous year to $77,789.<\/p>\n\n\n\n Did you know you can access free housing data with Zonda’s Market Snapshots? Reports include new-home supply and valuation, resale listings, jobs, market forecasts, and more. Get your complimentary market snapshot<\/a> for your local CBSA today.<\/em><\/p>\n\n\n\nWeaknesses<\/h3>\n\n\n\n
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