Well-heeled buyers would just as soon settle for a palatial pad in Las Vegas near jingling casinos than a Los Angeles estate near the beach.
Sin City, with its summer mercury topping 120 degrees, is a hotter home market than L.A., the Las Vegas Review-Journal reported, citing a study from Zonda, a new residential construction data firm.
The desert city has become the eighth-most demanding market for luxury home buyers, edging out Boston and nearby Southern California, from Beverly Hills to Malibu.
“The lack of state income taxes and reasonable property tax rates combined with world-class entertainment, sports and dining are a major draw for affluent households,” Sean Fergus, executive director of economic research with Zonda, told the Review-Journal.
“Las Vegas has some of the tightest resale supply in the country, which is driving shoppers into the new home market.”
The top spot for high-end buyers this year is Charleston, South Carolina, according to Zonda.
Luxury homebuyers are the least challenged by current market conditions such as higher interest rates and high home prices, according to the study. They also benefit from wealth accumulation, a robust stock market and home price appreciation.
The high-income job market in Las Vegas has grown 7.9 percent since 2019, per Zonda.
On the plus side for the Southern Nevada city are a favorable tax climate, entertainment, nightlife, restaurants, sports teams, international airport and close proximity to outdoor activities, according to the Review-Journal.
The downside: extreme summer heat, tight housing market, dearth of green spaces compared to other cities, higher-than-average crime in some areas, plus crowds and congestion.
The city is also expanding its corporate footprint and luring businesses away from other cities, according to Kaori Nagao-Chiti, a global real estate adviser for Las Vegas Sotheby’s who has had a number of the top-selling properties over the past few years.
Diversifying its economy has given Las Vegas a new edge, she said.
Luxury buyers are looking at greater Las Vegas, a draw for up to 40 million tourists a year, as a long-term bet for housing market resiliency and resale value, according to broker Tia Roman, owner of Re/Max Reliance in Las Vegas.
“We are overall priced lower than other luxury markets, and even though our cost of living is higher than many areas in the U.S., it is expected and justified given the fact that we are a resort town and offer all the amenities we do,” she told the publication.