Las Vegas Has One of the Lowest Number of Home Purchases by Millennials, Report Says
LAS VEGAS, NV – As per a newly-released report by a construction industry analytics firm, Millennials are slowly being priced out of the Las Vegas housing market, with the group being ranked as one of the lowest in terms of home buying not only in Southern Nevada, but nationwide as well.
Construction Coverage notes that out of the 55 largest metropolitan area they examined, Millennials – defined as the generation born between 1981 and 1996 – were responsible for buying just 48.4 percent of the single-family homes in Las Vegas in 2023. Tucson, Arizona was the only city ranking lower than Vegas in this regard at 45.2 percent, while San Jose, California was the city with the highest percentage of Millennials home-buyers at 73.2 percent.
According to the author of Construction Coverage’s report, Jonathan Jones – a senior researcher for the firm – Millennials residing in the Las Vegas Valley were taking out mortgages in 2023 with the highest loan-to-value ratios of any age group. In addition, given the fact that an individual’s average peak earning and home-buying years are their mid-30s – the current age of the average Millennial – they are not purchasing residences at nearly the same level when compared to other demographics.
Recently, the cost of homeownership has skyrocketed in large part due to an adverse combination of high interest rates and scarce inventory, leaving millennials with a daunting homeownership outlook,” Jones said.
The median loan amount for Millennials purchasing a home in the Las Vegas Valley in 2023 was $385,000; those loans had an 86.2 percent median loan-to-value ratio, which is higher than for younger demographics. When looking at the overall rankings state-by-state, Nevada had the fifth-lowest Millennial home buying rate at 48.1 percent – Delaware was the lowest at 40.6 percent – whereas Massachusetts had the most at 64.2 percent.
Despite this, and an overall decline in home buying across the country, millennials still accounted for the majority of the nation’s home purchase loans in 2023 (56.9 percent),” Jones said. “However, rates vary by location. Researchers ranked metros by the millennial share of conventional home purchase loans originated in 2023.”
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.