The number of homes on the market in Las Vegas jumped a whopping 31% in July compared to the same month last year, the highest increase in housing inventory for any major U.S. metro area.
It’s also nearly three times the amount of year-over-year growth in the country’s housing supply reported for July, according to a new analysis by Redfin, a Seattle-based online brokerage, and continues a decline that began in the spring.
Las Vegas is experiencing a drop-off in tourism with 12% fewer visitors in July than a year ago, the Las Vegas Convention and Visitors Authority reported. In June, the decline was measured at 11.3% less than the same month in 2024.
The slowdown in tourism comes amid the economic uncertainty surrounding President Donald Trump’s tariffs and other policies, including his repeated suggestions that Canada become the 51st state, which has led to many Canadians skipping trips to Las Vegas and other parts of the U.S.
Earlier this year, a national poll found that Trump’s actions also have resulted in a majority of Americans reluctant to make big purchases like a new home. A Deseret News/Hinckley Institute of Politics poll in May showed Utahns are also hesitant to spend big.
Other reasons for the bump in the number of homes for sale in Las Vegas cited by Redfin are:
- Unaffordability. Just 20% of the homes listed in the Las Vegas market are in reach for a family earning the local median income, given a $2,472 typical mortgage payment.
- Cheaper rents: Landlords are charging a median monthly rent of $1,586, less than the median mortgage payment but up 2.6% from a year ago.
- Rental restrictions. New restrictions on short-term rentals are making rental properties less attractive, although a federal judge just blocked some rules from taking effect.
Las Vegas’ housing market volatility is also a factor, with the tourism-dependent economy often reacting sharply to events. Redfin pointed out that during the 2008 financial crisis, the city’s housing market crashed but then boomed during the COVID-19 pandemic.
Some see what’s happening in Las Vegas as a potential indicator of what may be in store for the rest of the country. Today’s fall in visitors to Las Vegas is similar to what the city saw as the Great Recession took hold and unemployment climbed.
“Las Vegas has tended to be the bellwether for the rest of the country when the business cycle slows down,” Andrew Woods, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, recently told NBC News.