LAS VEGAS (KLAS) — Las Vegas has been ranked as the second-worst out of 50 metropolitan areas for first-time homebuyers, according to a new Bankrate study.
The study based its rankings on several factors including affordability, market tightness, safety, and job market.
Not only have rising home prices and shrinking inventory in Las Vegas made it less attractive to homebuyers, but a comparatively high unemployment rate, the study said, also drags the city down.
Las Vegas overall ranked 49 for homebuyers, followed by its job market ranking at 41, which is based on the March 2022 unemployment rate as reported by the U.S. Labor Department. The unemployment rate in March 2022 was 5%.
High housing and rental prices have combined with skyrocketing inflation over the last several months, with consumer prices jumping 8.3% in April from last year. Not only does this make Las Vegas less attractive to new homebuyers, but it also puts immense pressure on current residents and renters in the city.
The current average rent for a one-bedroom apartment in Las Vegas is $1,372, a figure that jumps to $1,622 for a two-bedroom apartment, Rent.com reported.
Inventory is also a factor in the rental market as much as the housing market — Rent.com also found that 58% of rental units in Las Vegas cost $2,101 or higher, 28% are between $1,501 and $2,100, and only 10% of rentals are priced between $1,001 and $1,500.
In 2022, for a resident to afford the current average rent for a one-bedroom apartment without paying more than 30% of their income on housing, they would have to make roughly $4,573 monthly or $54,880 annually.
The median income in Clark County was $31,600 in 2020, according to U.S. Census data.