Las Vegas housing market seen dramatic changes during decade, report says
NEVADA (KTNV) — The housing market has seen a bounce back since the beginning of the decade, and Las Vegas ranks near the top nationally for the most changes seen.
Las Vegas, Fort Lauderdale, San Francisco, and Salt Lake City are tops in the country when it comes to the most dramatic housing shifts since 2010, according to a new report from Redfin .
"The housing market is ending the decade in a vastly different place than it began," said Redfin chief economist Daryl Fairweather. "In 2010, the market was in the middle of its greatest downturn in history. Home values were plummeting, and the share of mortgages in delinquency was at an all-time high. Now, home values have recovered along with the economy."
Las Vegas saw incomes fall dramatically during the great recession, something that still has not caught up, according to the real estate company, along with the most significant divergence seen between home prices and incomes.
The median home price in Las Vegas increased at an average annual rate of 14.1% over the decade, while the median income declined at an average yearly rate of 0.4%.
Redfin's report says as incomes fell, residents could no longer afford to own a home, which caused a simultaneous decline in the homeownership rate from 59% in 2010 to a low of 52% in 2016, followed by a slight increase to 53% as of 2017.
Even though the homeownership rate remains low, demand from investors looking to rent out or flip homes has supported high home price growth.
Florida was one of the epicenters of the foreclosure crisis and experienced some of the most significant declines in home values leading up to 2010. But as the sunshine state recovered from the housing crash, home values also increased, leading to the nation's most extensive post-crisis recovery.
In Fort Lauderdale, the median home price increased 161% from $106,000 at the beginning of 2010 to $278,000 at the end of 2019.
San Francisco is the area seen that had the most significant jump in home prices. Eight out of the nation's top 10 metros for home price increases in dollar value were in California.
In San Francisco, the median home price increased $711,000—from $698,000 at the beginning of 2010 to $1.4 million by the end of 2019.
Salt Lake City has had the steepest drop in home supply since 2019.
Redfin reports that inventory declined by 77% in that city over the decade because Salt Lake City homeowners are staying in their homes longer than usual. The typical Salt Lake City homeowner had spent 23 years in their home in 2019, versus 15 years in 2010.
Courtesy of KTINV Las Vegas