The Las Vegas Valley ranks third in the U.S. for home foreclosure rates as of July, as reported by real estate analytics firm Attom. Houston and Jacksonville, Florida, precede Las Vegas in foreclosure rates per housing unit. This trend comes amid declining economic conditions in Las Vegas, heavily reliant on tourism and gambling. Recent data indicates a downturn in casino earnings and a growing inventory of homes for sale, driven by retirees and investors leaving the market.
A report by the UNLV Lied Center for Real Estate notes a steady rise in notices of default in Clark County, with nearly 1,290 filed in the first half of the year, marking a 28% increase from the previous year. Despite these challenges, home prices in Las Vegas remain high due to limited land for development, increased construction and labor costs, and high interest rates.
Foreclosure filings have risen by 11% from June and 13% from July of the previous year, according to Attom’s CEO Rob Barber. Although rising home prices are helping some homeowners maintain equity, the increase in foreclosure filings indicates mounting financial pressure in certain markets.
Nevada leads the U.S. in foreclosure rates per housing unit, with one in every 2,326 units receiving a foreclosure filing, surpassing Florida, Maryland, and South Carolina. Realtor.com senior economist Joel Berner attributes the high foreclosure rates in Nevada and Florida to their economies’ reliance on the volatile tourism industry, which is often the first to suffer during economic slowdowns, leading to job losses and mortgage payment challenges for some homeowners.
