A recent report sheds light on the challenges faced by millennials attempting to break into the Las Vegas real estate market. According to data compiled by Construction Coverage from the Federal Financial Institution’s Examination Council, the Las Vegas Valley ranked second-lowest nationwide in terms of the percentage of millennial homebuyers in 2022.
The report indicates that only approximately 49 percent of homebuyers in the Las Vegas Valley last year fell into the millennial age bracket, defined as individuals aged 25 to 44. This figure starkly contrasts with leading metros like the San Jose area, where a staggering 74.4 percent of homebuyers were millennials. Conversely, Tucson, Arizona, trailed just behind Las Vegas, with only 44.9 percent of homebuyers being millennials.
Jonathan Jones, the author of the study, emphasized the pivotal role of financial considerations for millennial buyers. He pointed out that while various factors influence the housing market, price exerts significant leverage. From January 2021 to December 2022, the median home sale price in the Las Vegas-Henderson-Paradise metropolitan area surged by 40.4 percent, outpacing the national median by 6.6 percentage points. In contrast, the San Jose area experienced a more moderate 29.1 percent increase in median home sale price during the same period.
Jones highlighted the disparity in home equity between millennials and older generations, suggesting that the rapid escalation of home prices in Las Vegas likely deterred many millennial homebuyers.
Recent observations indicate a cooling trend in Las Vegas’ real estate market. The latest housing market report from Home Builders Research Inc. revealed a decline in new home net sales in July 2023, marking the lowest monthly total since January. This downturn underscores the formidable challenges millennials face in accessing homeownership in the Las Vegas area.