When it comes to investments, hitting it big seems to depend a great deal on luck. To a certain extent, the same is true of real estate investments. “Buy low, sell high” is a terrific formula, but discovering the properties most likely to transition from low-end to luxury can feel like rolling the dice. Fortunately, finding up-and-coming neighborhoods isn’t quite as cross-your-fingers as shaking a Magic 8 Ball. Look for these five signs to discover the next soon-to-be hot spot in Las Vegas.
Sign 1: Opportunities for Mixed Use Developments
“Walkability” is a significant driver in today’s real estate market. Urban cores that offer live/work/play environments are drawing Millennials, in particular—and they’re willing to pay a premium to settle there. Not only does walkability have a direct, positive correlation with real estate values, but it also plays a role in market recovery. That means at least some of Las Vegas’ recent bounce-back can be attributed to growth in up-and-coming neighborhoods such as The Arts District or the pricier Gateway District.
Sign 2: Vintage Construction
Purchasing a newer home in a planned community can be a fine strategy—if you have sufficient capital to begin with. But if you’re hoping to make a lot of money from a small investment, going vintage may be the ticket. Given that Vegas has been around for barely more than a century, you won’t find too many Victorians or Tudors waiting for a good flip. You will, however, find some on-trend Mid-Century Modern homes in classic neighborhoods. Paradise Palms, John S. Parks, Beverly Green, and Scotch 80s are great places to start your search.
Sign 3: Renovations are on the Rise
Regardless of the style of architecture, neighborhoods actively engaged in renovations—from homeowners building their own decks to investors actively flipping entire homes—are definitely in the up-and-coming category. Don’t be shy about talking with city planners and in-the-know folks sitting behind permit counters. Paradise, situated between McCarren Airport and University of Nevada-Las Vegas, has been a prime neighborhood for flipping. Also check Spring Valley for low-price, high-potential options.
Sign 4: Something Big in the Air
If you’re looking for a spot that’s more than likely going to trend up in the market, look to see who’s attracting new big businesses or other exciting economic developments. For example, Vegas’ new NHL deal that’s putting a new team in the T-Mobile Arena gives another nod to the Paradise neighborhood, along with nearby communities such as Silverado Ranch and even as far east as Henderson. And if our bid to bring the Raiders is successful, real estate’s bound to soar near the new stadium site, which looks to be on or near the Strip with access to the monorail and I-15.
Sign 5: Listings Are No Longer Lingering
When listings begin to disappear faster than they’re appearing, you can bet you’re looking at a hot neighborhood. Days on market (DOM) is a strong, early indicator that an area of town is becoming highly sought after—even if the prices of those homes don’t yet seem to be trending up. In Las Vegas, we currently have our eye on Mountain’s Edge and Cadence, in addition to previously mentioned Scotch 80s and Henderson.
Given Las Vegas’ never-quit culture and its already strong, post-recession recovery, there’s little question real estate is a solid investment across the metro area. As cited by Forbes, Local Market Monitor predicts home prices in Las Vegas to grow by 17% in the next three years—and that’s after an already impressive appreciation of nearly 12% in 12 months. Do your research and look for these five signs, and you’ll be confident that you’ve chosen the perfect location for your next real estate investment.