Real Estate

Income needed to buy your first home in Las Vegas.

You need an income close to six figures to buy a starter home.

Las Vegas, NV, is known for its entertainment, amenities, attractions and beautiful weather. However, Las Vegas is not just the entertainment capital of the United States. It is also home to a booming real estate market that has seen significant growth in recent years.

For many, Buying a Home in Las Vegas It’s a dream come true, but it’s also important to know how it will affect your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home.

So whether you already live in Sun City or are looking to move to the area, here’s a summary of the income you’ll need to buy your first home in Las Vegas.

check this out Our original report For a detailed country-wide analysis.

How much income do you need to buy a starter home in Las Vegas?

The median sales price for a starter home in Las Vegas is $299,100. To afford it, first-time homebuyers in Las Vegas would have to earn $92,011 a year, up 6.2 percent from 2023.. However, the median income in Phoenix is ​​$78,212, the mean The average resident often cannot afford a starter home.

As expected, starter homes in Las Vegas are more affordable than the average home (all price brackets combined; see Procedures for details). To afford a median priced home in the area, You will need to make $113,186. (Until October 2023).

Nationwide, you need an income of $75,849 to afford a typical starter home, with a median price of $240,000. The average American household earns an estimated $84,072.

A First-Time Home Buyer’s Guide to the Las Vegas Housing Market

Phoenix was an especially popular relocation destination during the pandemic housing crisis, as homebuyers sought Sunny and lazy. The trend continued even after the pandemic — Las Vegas was. Second most popular metro To move home buyers by the end of 2023. This influx has driven house prices up 26 percent since January 2021, from $313,000 to $425,000 in April 2024. Housing prices have more than doubled in the past decade.

Although weather hazards are a major concern in Las Vegas. The city is in the middle of one. Decades of mega-drought plagues in the southwestern United States, and recently experienced a record-breaking summer for heat. The mean temperature was 97.3° F in July, with 10 straight days at or above 110°F. Experts predict that these trends Will continue As climate change worsens.

The desert oasis is home to world-renowned amenities and attractions in many of its neighborhoods, such as the Las Vegas Strip, the Fremont Street Experience, the Stratosphere Tower, and the Fountains of Bellagio. In addition, Red Rock Valley is beloved for its recreation and scenic views.

Some Famous neighborhoods in Las Vegas involved in Angel Park, Centennial HillsAnd Charleston Heights.

What does a typical down payment look like for a starter home in Las Vegas?

Here are some typical down payment amounts for a typical $299,100 starter home in Las Vegas:

Down payment percentage Down payment amount
3% down payment $8,973
3.5% down payment $10,469
5% down payment $14,955
10% down payment $29,910
15% down payment $44,865
20% down payment $59,820

Down payments can range from 0% to 100% of the home’s total value, depending on your budget, loan type, and long-term preferences. Although experts have historically recommended budgeting for a 20 percent down payment, rising housing costs and continued affordable wage growth have 15% down payment is becoming more common.

Some loan types allow for lower down payments. For example, a Federal Housing Administration (FHA) The loan only requires 3.5% down, the lowest possible down payment for one Conventional debt is 3%. These amounts usually depend on your credit score, so buyers with higher credit scores may qualify for lower payments.

Farmhouse with rust-colored roof_Getty

What is a typical mortgage payment for a starter home in Las Vegas?

The typical monthly mortgage payment for a starter home in Las Vegas is $2,300. This assumes you put 3.5% down and an interest rate of around 7%.

If this payment seems too high, you may want to reconsider. Renting an Apartment in Las Vegas. With an average rental price of $1,931, this is likely a better option when you’re saving for a down payment on a home. You can also use one. Affordability Calculator To see what you can afford based on your income and down payment.

What should you do next?

If you are in the market for your first home in Las Vegas, this is important to understand. How Much Home Can You Afford?. Look at your annual income, credit score, current mortgage rates, and local market trends to decide which is best for you.

From there, one Las Vegas agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s The First Time Home Buyer’s Guide.

Procedures

Redfin divides all U.S. real estate into five buckets based on Redfin estimates of the market value of homes. There are three equal size tiers, plus tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes that have fallen in value in the 5th to 35th percentile of sales. Redfin estimates level

We calculated the annual income needed to afford a starter home, assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming a buyer has a 3.5% down payment and take into account the average monthly sales price and average mortgage interest rate.

National income data are adjusted for inflation using the Consumer Price Index. 2024 income estimates are based on US Census Bureau (ACS) 2022 median household income estimates using a 12-month moving average of nominal wage growth. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.

We assume that housing payments include mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).

All data obtained from February 2024 unless otherwise stated.


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button