LAS VEGAS (KTNV) — Becoming a homeowner in Southern Nevada remains a daunting challenge.
A new report by Las Vegas Realtors shows the Las Vegas housing market prices continuing to increase with the average price for a single family home now at $469,000 and $290,000 for townhomes and condos.
For many, buying a home in Las Vegas right now is out of reach. But for Zen Star who recently moves here from San Francisco, prices here make owning a home possible.
"Overall the whole cost of living here is so much less it is just a no brainer.. I was taking a look on Zillow and I found that they were very affordable compared to where I'm coming from in California," Star tells us.
Star is in the process of purchasing a 1 bedroom, 1 bath condo for $125,000 near downtown Las Vegas.
ABEL: "How much would that condo be in a place like San Francisco?"
STAR: "$1.5 million easy…easy."
But unlike star, many locals express to me their frustrations with what they consider to be unaffordable prices.
Zar Zanganeh, managing partner of the Las Vegas Agency, says April's real estate data brings light to a significant shift. Prices are soaring and demand is surging, making single-family homes unattainable for many.
ZAR: "Prices are not coming down even though the inventory has gone up and interest rates continue to go up. The price of land in Las Vegas is high so developers can't afford to build homes in the 500 to 600 thousand dollar price range. Most of the new construction homes are starting higher…the price of townhomes and condo is at an all time high but still 180k less than the median home price for a single family home."
Zanganeh says with limited land to build on, the only reasonable priced form of housing are condos and townhomes.
So, how much money do you need to buy a home here in the valley?
We used an affordability calculator on Zillow to find out.
Let's say you're considering a $470,000 home. With a $17,000 down payment, a 36% debt-to-income ratio and a 7% interest rate...you would need an income of about $140,000 a year to afford.
ABEL: "What is that monthly payment looking like for people who want to get into the market now?"
ZAR: "Monthly payments for the average home are ranging anywhere from 2,500 to more than 4,000 depending on your credit and interest rate."
Star says while the price is still too high for many locals, for him it is a relief.
STAR: "If you live in a place you can't afford to live you have to move and Las Vegas is the place for me personally."
