The Las Vegas Valley is currently short approximately 32,192 housing units, according to a new report from Zillow.
This figure represents a significant increase from previous years and highlights the ongoing challenges in the local housing market.
Zillow’s study, which analyzed data from the U.S. Census Bureau, examined the years leading up to, during, and after the pandemic, specifically from 2019 to 2023.
The report showcases the massive impact that Covid-19 has had on the real estate landscape in the nation, particularly in the Las Vegas Valley.
In 2019, the valley had an estimated housing deficit of 11,901 units.
However, by the end of 2023, existing inventory had decreased by 38 percent compared to pre-pandemic levels, exacerbating the housing shortage.
The total number of housing units in the valley rose from 899,870 in 2019 to 935,949 in 2023.
Orphe Divounguy, a senior economist with Zillow, noted that, despite this growth in housing supply, it failed to keep pace with the area’s increasing population.
“Las Vegas added about 36,000 housing units on net between 2019 and 2023, mostly on the for-sale side,” Divounguy stated.
“However, the number of families living in Las Vegas grew twice as fast,” he added.
As a result, the housing unit deficit nearly tripled in four years, soaring from less than 12,000 to over 32,000 units.
Several factors contributed to this alarming trend, Divounguy explained.
While overall population growth across the country is starting to slow, it has already begun to impact the housing market in the short term.
“On one hand, housing construction is slowing.
More inventory and downward price pressures are already causing builders to pull back,” he noted.
Conversely, family formation rates are also likely to decrease moving forward, which could further complicate the housing situation.
The number of vacant units in the valley has decreased from 116,347 in 2019 to 88,583 in 2023.
However, the overall total of available units for housing dropped significantly from 45,299 to 33,670, meaning that there are now fewer homes available for rent or purchase.
The study found that the number of rental units remained relatively stable from 2019 to 2023, with only a slight increase from 364,180 to 364,249 units.
In contrast, the total number of owned housing units increased from 419,343 to 483,117 during the same period.
Additionally, the number of families living in the valley surged from 840,647 in 2019 to 913,207 in 2023.
The Zillow report underscores that America’s housing problem has been worsening for over a decade.
Since the 2008 financial crisis, the country has failed to build enough homes, forcing many families to share living spaces with those outside of their family.
By 2019, nearly twice as many families were sharing homes with non-relatives compared to the number of homes available to buy or rent.
Despite a construction surge during the pandemic, this housing shortage continues to persist.
According to Census data, only 3.4 million homes were vacant and available for rent or sale in 2023, while 8.1 million families were forced to share their homes with unrelated individuals.
While some individuals choose to live with roommates, it is likely that many of these families would prefer independent housing if affordable options were available.
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