Las Vegas home prices have been steadily increasing since the crash real estate of 2008. Las Vegas has been moving at a feverish pace since 2010. Vegas was booming in 2013. EDM was mainstream.
Taylor Swift was dating Calvin Harris in 2014. Calvin Harris had a residency at MGM Grand, then at Omnia. David Guetta and Zedd were resident DJs at XS. XS was the worlds number one grossing night club, or so they claim.
In fact, 6 out of the top 10 nightclubs were in Las Vegas in 2015. Las Vegas exceeded a population of 2 million, mostly conservative transplants from California. They were excited to get a Dave & Busters.
Then, it seemed like the leaders of Las Vegas said, "hey we had better strike while the iron is hot. We better sell, sell, sell before the next crash."
They quickly built the Park MGM, the T-Mobile Arena, the Allegiant Stadium, brought in 3 professional sports teams, a minor league soccer team, 2 brand new casinos and a several of casino makeovers all within 3 years.
Then the concert shootings began. Ariana Grande, Route 91, and the Orlando nightclub to name a few. But nothing, not even the World's largest mass shooting in history at the Manadaly Bay in Las Vegas, would stop the construction schedule. Not even a global pandemic would shut it down -- they continued to build the stadium and the resorts world during the 3 months shutdown. Over 60 cases of the COVID virus were reported at Allegiant Stadium.
Las Vegas home prices were $405,000 last month. I’m hearing people are offering “all-cash” deals. I’m also speculating that the recent home buying craze in Nevada is a result of higher taxes in California. There is no income tax in Nevada. Property taxes are also quite favorable compared to California. What many Californians are doing is buying a second home as a tax shelter. The income tax savings for a four person family moving from California to Nevada would easily justify a $400,000 investment. But what I’m hearing is a lot of people are buying houses in Nevada but they stay in their home in California.
Work from home has created a tax loophole
The work from home movement has given a tax loop hole for Californians tired of paying high taxes. Buyers can purchase a second home in Nevada and work from their primary home in California. Wherever you tell the IRS to send your tax refund is where you can declare the income taxes from that State. For example, a person works in San Francisco. They live in Oakland. Therefore, they must pay California state income tax. Then they buy a second home in Nevada. They claim they claim they live in Nevada while working “from home” in San Francisco. Furthermore, the IRS thinks they live in Nevada when they are really in San Francisco. Unless an IRS agent follows them around for a year, I’m not sure how they could prove the person does not live in Nevada.
If Las Vegas' economy is as strong as the media says, then why did MGM and the LV Sands dump their most valuable properties?
In 2018 the Hard Rock sold. 2019 MGM Grand, Circus Circus, Mandalay Bay and the Bellagio sold. 2021 Las Vegas Sands, the Palazzo and the Venetian sold. 2021 New York, New York, Luxor, Excalibur, the Mirage, the Aria, the Vdara, and a bunch of other casinos.
As a side note, I have been following Las Vegas stocks for the past 30 years. Every 10 years there is a crash. This is most likely due to over speculation. When the sellers bring the buyers to invest, Las Vegas rolls out the red carpet. I feel that the leadership of Nevada is to blame for constantly overselling Las Vegas. I'm not political, but Steve Sisolak was a novelty cup salesman from Wisconsin before he started running for public office in Nevada. He sold the Raiders on Vegas. He sold the public on a .88% tax hike. The tax would be passed onto tourists staying at hotels anywhere in Las Vegas. It's very easy to get bamboozled in Las Vegas.