New Study Says Las Vegas Has Most Volatile Large Housing Market In U.S.
LAS VEGAS, NV – According to a new study released by Construction Coverage, a company that specializes in researching construction software, insurance, and related services, Nevada, Georgia, Michigan and Arizona rank among the least stable states for real estate, and Las Vegas is currently the most volatile large housing market in the nation.
In order to gauge housing market stability in the long-term, the study utilized data obtained from Zillow to analyze home price trends across major metropolitan areas across the country. The markets in question were then ranked based on the likelihood that a random buyer would have experienced a price drop of over 5 percent following a purchase.
Based on that criteria, eight major metros displayed a greater than 40 percent chance of a 5 percent or more price drop, with Las Vegas ranking at the top of that list as being the most volatile.
Las Vegas has been the most volatile large metro, with a 48.5 percent probability of a 5 percent or greater price drop and a 63.9 percent peak-to-trough decline, amounting to a staggering $210,860 loss in home value,” the report reads. “While home prices in Las Vegas have increased 182 percent since 2000, reaching a median value of $428,434, this growth has come with severe price fluctuations, particularly during the housing crash of 2008 and the rapid price corrections following the pandemic-era boom.”
The city’s high volatility can be attributed to speculative investment, a tourism-dependent economy, and a rapid influx of new housing supply, which amplifies both booms and busts,” Construction Coverage adds.
In contrast, the reports names South Dakota, Oklahoma, Alaska, Iowa, and Vermont as the states being the most stable, and Buffalo, New York as being the least volatile city.
When asked about his thoughts regarding Construction Coverage’s study, Chairman and CEO of Coldwell Banker Premier Bob Hamrick said that two events shaped the current real estate market in Las Vegas – the Great Recession and the COVID-19 pandemic; however, he noted that the market in Southern Nevada is showing signs of returning to stability.
I’m hearing that we have a balanced market now,” Hamrick said. “We do have a balanced market when you look at the period of time. It’s over a 25-year period of time. When you look at that period, there were two monumental events that took place then— both of which had significant impact on Las Vegas.”
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.