In recent years, Las Vegas has become increasingly attractive for people looking for alternatives to cities such as Los Angeles, San Francisco, and New York. Especially now, as remote working has become the norm, people can work from almost anywhere in the country. High costs of living and income taxes in these cities could previously be reasoned with due to the lifestyle associated, but the pandemic has transformed this thinking. Take Los Angeles for example, 2020 was the first time since 1900 the state experienced a net migration loss, with 135,000 more people leaving the state than moving in.

The property taxes in Las Vegas are among the 10 lowest in the country, coming in at number 8. Plus, Nevada has no state income tax, which is a stark contrast to the 12.3% state income tax in CA for the wealthiest of the population.

These factors combine for making it perfectly suited for the luxury real estate market. Last year, the Las Vegas and Southern Nevada market for homes valued at over $1M was up 38% from 2019, while the market for homes over $4M doubled. This drastic increase can be attributed to low interest rates as well as people relocating from other cities now that remote working has become the norm. This trend will only continue into 2021 as Las Vegas becomes the new luxury home destination.

With so many Americans working remotely, many have decided that they no longer need to live as close to the office as they used to. “Zoom towns” have become a major real estate trend as people opt to live outside major metropolitan areas. Vacation destinations are seeing major increases in demands as people look to escape crowded cities now that they work from home. Plus, unlike places like NY, SF, or LA, smaller cities typically have lower housing costs. Homebuyers can invest in spacious, luxurious homes in cities like Las Vegas that feature low interest rates and no state income tax.

With the rising demand, we anticipate that many home builders will struggle to keep up. Just as the real estate market has skyrocketed, the demand for new, custom-built luxury homes will grow as well. Uniquely situated on the edge of the Mojave desert, Las Vegas has an abundance of vacant land ready to be built upon, unlike cities like LA, SF, or NY. This will only continue to fuel the luxury markets, as people coming in from these and other cities can build the luxury home of their dreams at a fraction of the cost to build it elsewhere.