Buy or Rent in Las Vegas? Report Says Buy

The Las Vegas real estate market keeps coming up Number 1.  In a recent report by Trulia, Las Vegas ranked #1 out of the top 10 American cities to buy vs. rent a home.  In other words, for many in Las Vegas, buying makes more sense than renting.

More specifically, the “price-to-rent ratio” in Las Vegas in the second quarter of this year was 6 – the lowest in the nation.  The ratio is calculated by dividing the median list price by the median annual rent.  According to Trulia’s interpretation key, a ratio between 1 and 15 indicates that “owning a home is much less expensive than renting.”

To calculate the ratio, Trulia looked at the total cost of Las Vegas home ownership and the total cost of a Las Vegas rental.  The total cost of Las Vegas homeownership includes:

  • Mortgage principal and interest
  • Property taxes
  • Hazard insurance
  • Closing costs
  • Private mortgage insurance (for borrowers who put less than 20 percent down on the purchase of their home)
  • Ongoing HOA dues (which, of course, don’t apply for every homeowner)
  • Plus an offset for the tax advantages associated with owning a Las Vegas home, including mortgage interest, property tax and closing cost deductions

The total cost of renting a Las Vegas home includes:

  • Rent
  • Renter’s insurance
  • With no tax advantage offset

If you’re looking to buy a Las Vegas home, there is a wealth of affordably-priced homes for sale.  Even beyond that, there are other reasons Las Vegas is an excellent place to own real estate: great weather, beautiful neighborhoods, year-round golf, award winning restaurants and fabulous entertainment.

But Trulia’s calculations don’t account for the fact that getting a mortgage can be tough nowadays – certainly tougher than it has been in the last decade.  Some would-be buyers, whether they’ve had a recent short sale or foreclosure, job loss or bankruptcy, simply may not qualify for a mortgage to buy a home.  If that’s the case, renting a Las Vegas home can still be a great option.  Click here to search available Las Vegas rental properties.

Whether you’re buying or renting, the Las Vegas real estate experts at Shelter Realty can help.  Give us a call today at (702)-376-7379.