Las Vegas luxury home prices jump 161% over past decade, report says

Luxury home prices in the Las Vegas Valley are rising faster than they are in most other major cities, according to a new report.

From 2015 to September of this year, the valley ranks fourth in the country for rising luxury real estate prices, according to a Redfin report. The median price for a luxury home in the valley is approximately $1.57 million, a 161 percent increase since 2015 and 8.5 percent year over year.

Redfin has the average price of a luxury home nationwide at $1.27 million, an increase of 82.5 percent since 2015 and 5.8 percent year over year.

Ivan Sher, the founder of IS Luxury real estate brokerage, said out-of-state interest in the Silver State is the reason for much of the luxury price growth.

“The Las Vegas market has been growing consistently, driven in large part by the migration of wealthy and ultra-wealthy individuals from states like Washington and California,” he said. “As those states impose higher wealth and inheritance taxes, many are relocating to Nevada, Arizona, and Tennessee. While tax savings are a primary motivator, these moves are also fueled by a desire for a more balanced, moderate economic climate. I expect this trend to not only continue but to increase as these states continually reinvent new ways to burden the wealthy.”

The Sun Belt has seen the most dramatic rise in luxury home prices out of any region in the country and Redfin outlined this in its report.

“Several Sun Belt metros not only became more expensive—they moved dramatically higher in the national luxury price rankings among major metros,” read the report. “Las Vegas and Phoenix both climbed 15 spots, the biggest leaps in the country, and Nashville, Orlando and Charlotte were close behind.

The luxury market across the U.S. has started to spread out over the previous decade, said Redfin’s head of economic research Chen Zhao.

“The luxury market has expanded far beyond its traditional boundaries,” she said. “The priciest homes used to be more concentrated in a smaller number of East and West Coast metros. Today, high-end wealth is increasingly distributed across the Sun Belt—from Florida to Texas to Arizona.”

Nationally, home prices rose the most in West Palm Beach, Florida from 2015 to September of this year, as the median home price of a luxury home sits at $4 million, a 187 percent increase over the previous decade.

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.