Investor homebuying activity in the Las Vegas Valley has seen a significant decline, according to a recent Redfin report. In the third quarter of this year, investor purchases of homes in Las Vegas dropped by 20 percent year over year—the steepest decrease among major U.S. metro areas during that period. Redfin defines investors broadly, counting buyers whose names include terms like LLC, Inc, Trust, or Corp, as well as those with ownership codes indicating associations or corporate entities.
Since the 2008 Great Recession, investors have acquired nearly half a million homes in Las Vegas, and a UNLV study estimates they currently own at least 15 percent of the area’s housing stock, with concentrations as high as 25 percent in North Las Vegas. The two largest property owners in Clark County are Wall Street-backed companies. This trend has sparked calls from local politicians to limit the influence of large investors in the local housing market.
In the third quarter, investors purchased 1,451 homes in the Las Vegas Valley. Redfin chief economist Daryl Fairweather noted that Las Vegas has historically experienced greater volatility in home values, with investors often among the first to withdraw when the market cools, amplifying price swings.
Nationally, investor home purchases actually increased slightly—up 1 percent year over year, totaling about 52,000 homes. However, Redfin’s senior economist Sheharyar Bokhari explained that investor activity is “stuck in neutral” nationwide due to shrinking profit margins, more properties selling at a loss, and a softer rental market. He added that while investors are not abandoning the market, they are no longer driving demand as they did during the pandemic boom.
The report also highlighted broader issues affecting the entire U.S. housing sector, including high prices and interest rates pricing out many buyers, and fewer opportunities for investors to profit from flipping or renting homes. As a result, both traditional homebuyers and investors are facing a more challenging market environment than in recent years.
