Here’s where Nevada and Las Vegas Valley rank for foreclosures in US

The Las Vegas Valley is third in the country for home foreclosure rates in July, according to a new report.

Leading the country for foreclosures per housing unit is Houston (one in every 1,882 housing units), followed by Jacksonville, Florida (one in every 1,893 housing units), and Las Vegas (one in every 1,914 housing units), according to the report from real estate analytics company Attom, which looked at metros with populations of more than 1 million.

In a report on the Attom data, Realtor.com explained why Las Vegas is so high up the rankings.

“In Nevada, tourism is closely linked with the state’s gambling industry, which pumps billions of dollars annually into the state’s economy. But the latest available data shows that casinos have not been earning as much money as in the past,” read the report. “At the same time, homes in Sin City have been piling up on the market this summer, fueled by an exodus of retirees and real estate investors.”

A recent UNLV Lied Center for Real Estate report found the rate of notices of defaults for Clark County have been rising steadily for the past few years and nearly 1,290 NODs were filed in the county in the first six months of this year, up 28 percent from the same period last year.

Tourism, gaming and hospitality have all been slumping in Las Vegas as the metro deals with a downswing in economic activity; however, home prices remain elevated due to a number of factors, including a lack of land to develop, increased construction and labor costs and high interest and mortgage rates locking out many potential homebuyers or sellers.

Rob Barber, chief executive officer at Attom, said foreclosure filings are up 11 percent from a month prior (June) and up 13 percent from July of last year.

“July’s foreclosure activity continues to trend upward year-over-year, with increases in both starts and completions,” he said. “While rising home prices are helping many owners maintain equity, the steady climb in filings suggests growing pressure in some markets.”

Nevada is also leading the country when it comes to per unit rate of home foreclosures in July, according to the Attom report.

One in every 2,326 housing unit in the state has been given a foreclosure filing, which is the highest rate in the country ahead of Florida (one in every 2,420), Maryland (one in 2,566) and South Carolina (one in 2,588), the report said.

Realtor.com senior economist Joel Berner explained in a news release on the Attom report why Nevada and Florida have been hit the hardest lately.

“Florida and Nevada both have local economies that are heavily reliant on the tourism industry,” he said. “Tourism tends to be volatile, and when economic growth slows as it has this year, that industry is often the first and most painfully impacted. Some homeowners in these states may be losing their jobs and becoming unable to make their mortgage payments.”

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.