Report: Saving for a Down Payment in Las Vegas Could Take 17+ Years If Starting from Scratch

LAS VEGAS, NV – If you’re interested in buying a house in Las Vegas and are starting from scratch when it comes to saving for a down payment, a new study indicates that it could take over 17 years for the average person to accumulate enough dough to ensure they have an affordable monthly mortgage payment, given the conditions of the 2024 housing market.

According to Zillow, the median household income in the Las Vegas Valley is $77,502, and the average home there is worth $427,509; in order to be able to “comfortably” afford a monthly mortgage payment, the average family would need to have a down payment of $198,306.

With that in mind, if an average household were to sock away 10 percent of their income each and every month, it would take them 17.6 years to save that amount. That period of time represents a decrease from its peak – which was 20 years of saving in 2022 – and an increase of 3.3 percent from prior to the COVID-19 pandemic.

Zillow senior economist Orphe Divounguy noted that the current issues that many families are facing when it comes to the affordability of housing is forcing them to remain as renters for the time being, although relief may be coming in the form of an expected home value drop by as much as 1.2 percent over the next 12 months.

(This) reflects a market where more listings are coming onto the market, and staying there for longer, than previously anticipated,” he said. “Many homeowners are breaking free of rate lock, cashing in on massive appreciation of their property, and moving on with their lives. Meanwhile, would-be buyers are struggling with monthly mortgage costs that have more than doubled since pre-pandemic times.”

This situation is exasperated in Las Vegas, Divounguy said, due to the fact that the local real estate market remains much more competitive when compared to much of the nation.

Home value appreciation (in Las Vegas) has been stronger than the national average over the last year, partly because housing demand has kept up with the increase in supply,” he said. “While new listings are now up 23 percent compared to a year ago, total for sale inventory is just 3.5 percent higher than in May 2023. Although momentum has shifted somewhat, Las Vegas remains in a bigger hole than the nation in terms of available inventory, compared to normal, pre-pandemic levels.”

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.