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11/01/2020

Election Impact On Las Vegas Luxury Real Estate

City Center Las Vegas


How The Election Might Impact Las Vegas Real Estate

As previously stated, the Las Vegas luxury real estate market's health is primarily impacted by the in-state supply 
of housing, price to rent ratios, and out of state variables, including tax rates, quality of life, and advances in technology 
allowing people to telecommute/work from home.

Unfortunately, now, power blackouts, wildfires, air quality, and a reduction of home insurance options 
relative to fire-related events are accelerating the desire to vacate California.
As of October 30, 2020, there are only 304 homes for sale in Las Vegas Metro Area, priced at $1.5m or more. 

We believe this is insufficient as 691,000 California residents vacated the State in full-year 2019.

Many seek to reside in guard-gated golf communities such as: 

The RidgesRed Rock Country ClubMacDonald Highlands. 

Alternative options are Las Vegas strip condominium projects, including:

Veer Towers and The Residences at Waldorf Astoria.
 
The following articles share stories based on these topics:

Taxes

California to Out Of State Marketplace Sellers: You May Owe Income Tax Too
These 5 States Would Have The Highest Marginal Tax Rate (C.A., NJ, OR, HI, and M.N.)
California Would Have The Highest Marginal State And Local Tax Rate, At 62.64%,
View A Number Of Tax Rates, Ranks, And Measures Detailing Nevada's Income Tax
California Proposes Another Reason For Corporations To Move TAnother State

Property Investment ROI | Regulations

SF: Homes priced at $601,362 homes achieve $1000/monthly rental rates.  (Price/Rent Ratio 53.01)
LA (Price/Rent Ratio 38.58)
Las Vegas, offers homes at $600,000 whcih can achieve up to 
$3500/month depending on interior finishes.
Overview of Landlord-Tenant Laws in California
California Law Limits Increases Of Rent To 5% Each Year Plus Inflation. 
S.F. Rent Prices Plunge As Much As 31% — Steepest Decline In U.S., New Report Says

Relocation

691,000 People Moved Out Of California Last Year. Here's Where They Went
Benefits of Starting a Business in (or Relocating to) Nevada

Quality Of Life

Average Daily Commute Times:
  • San Francisco 67.6 minutes
  • Los Angeles 56.3 minutes
  • Phoenix 45.3
  • Las Vegas 25.4 minutes

Air Quality Index (AQI) And Pollution City Rankings

San Francisco has an AQI of 57, which cautions residents to: 

  • “Keep windows closed to avoid dirty outdoor (fire smoke,) air and that sensitive groups should reduce outdoor exercise.”
  • Las Vegas is omitted from the top 100 cities and has an air quality index of 19, and considered healthy.
  • According to the American Lung Association’s recent “State of the Air 2019” report, California leads the charts. f

Wildfires | Weather Events

$142 Billion In Southern California Housing At High Wildfire Risk 

PG&E Facing ‘Significant’ New Losses From California Wildfires, Utility Tells Investors

Climate Change and Poor Planning Are Blamed for California Blackouts

Record Heat, Fires, Planned Blackouts Sweep State

Wildfires In California Will ‘Continue To Get Worse,’ Climate Change Experts Explore Why

Summary

Although the election may have a marginal impact on Vegas real estate, I think Nevada will benefit from either candidate.

I shared previous concerns about the State mandated eviction moratorium and that the expiration on October 15th could 
result in a flood of non-performing investment properties coming to market; however, I have spoken to two of the largest process 
server/eviction companies, and one Principle stated that out of the 4,000 rentals which his clients own, 
only 150 evictions were requested and those may be re-rented vs. listed for sale.
The tsunami of for sale listings does not appear to be happening.
Stay well everyone, and contact our office if you need assistance.

AP

View-Condos-For-Sale
Lux Advisors Sales | Property Management

Call/Text: 702.482.8885 [email protected]

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