STRs Located in Las Vegas Among Most Profitable in United States; Investors, Fortunate Owners, Cashing In
LAS VEGAS, NV – Short-term rentals, STRs, are a major money-making business in the United States, and a new report indicates that among all of the cities in the country, the ones located in Las Vegas are among the very most profitable short-term rentals in the entire country.
The housing market in Las Vegas shot to unprecedented heights during the COVID-19 pandemic, with the median price of a single-family home jumping by over 50 percent by May 2022. Nearly 100,000 new residents moved to Southern Nevada during the same period of time, creating a seller’s market the likes of which had not been seen in many a year.
While most of the homes purchased during this span of time were by families and individuals who had relocated to the state, a large number of them were bought by investors seeking to turn them into STRs, a logical occurrence given the fact that Las Vegas is one of the most well-known destinations for tourism on the entire planet.
A new report released by finance experts Wealth of Geeks compared the average nightly rate of STRs in major cities across the United States, and contrasted that data with the average weekly wage in the same city, as provided by the U.S. Bureau of Labor Statistics. When comparing the two sets of information Wealth of Geeks were able to figure out what percentage of their weekly earnings could be comprised of income from Airbnb ownership.
Among major U.S. cities, Las Vegas came in at number five on that list, with the average nightly rate being $312. And with the median weekly wage in Las Vegas being $724, the average profit made from a nightly rental rate would translate to approximately 43.1 percent of the owner’s weekly income, according to Wealth of Geeks’ data.
Of course, STRs are typically not rented out seven days a week, 365 days a year; however, even a slow short-term rental can still generate a significant degree of revenue for its owner in Las Vegas. An example of a slow month could be comprised of two three-night weekends a month, which would bring in $1,872 in profit alone; during busier months, a fortunate owner could book all four weekends, and if they are using a four-night minimum, that would get them $4,992 a month.
And one thing about Las Vegas, experts say – there aren’t many slow months.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.
About the Author
Christopher Boyle is an investigative journalist for SEARCHEN NETWORKS® and reports for independent news and media organizations in the United States. Christopher helps keep a keen-eye on what's happening in the Las Vegas Nevada community on behalf of Shelter Realty Inc.