LAS VEGAS (KTNV) — Las Vegas has the fourth highest home foreclosure rate in the country, according to a study by online real estate data company ATTOM.
I spoke with an associate professor of real estate at UNLV and a resident who's witnessed the impact firsthand.
"This stuff is killing us here in Las Vegas, which used to be the place where everyone wanted to move to cause it was affordable," said North Las Vegas resident Orlando Cotton.
He says he is paying significantly more to keep a roof over his head, and he is not alone.
"Were you surprised when your neighbor's home went into foreclosure?" I asked.
"Yes, I was, and she just couldn't afford to keep it after her parents passed away," he said.
Cotton says he has seen more foreclosures in his neighborhood. According to ATTOM, Nevada ranked first in the nation with the worst foreclosure rate in August. Las Vegas ranked fourth among cities in the US with the highest foreclosure rates.
One in every 1,796 homes was in foreclosure.
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"Can you agree with what they are finding?" I asked the Director and Associate Professor of real estate at UNLV, Shawn McCoy. He is monitoring foreclosures in the valley regularly.
"Consumer savings that was piled up during the COVID economy through massive injections of capital from the feds, a lot of that consumer savings that homeowners used is expiring," he said.
McCoy says the rate of foreclosures in Las Vegas is not alarming.
"In a historical sense, foreclosure rates are low," he said. "In a short-term sense, they are high relative to the nation and nonetheless rising."
McCoy says they use a map to identify hotspots throughout the valley that may have more foreclosures.
"Up here in the north part of town, we are seeing a lot of red," McCoy told me.
"What does that mean?" I asked.
"In the northwest and north part of town, income levels are lower than many, and I think most would agree it is going to hit or bind homeowners at lower income levels first," he answered.
Cottons says he agrees with McCoy's findings and says the people in his area struggle.
"You can't afford it," Cotton said. "The bottom line is you can't afford to pay $2,500 to $3,000."
McCoy says the circumstances we are seeing now are different than those we saw in 2008 before the big financial crisis.
