Las Vegas Renting vs Owning – February 2024 Edition

Trying to determine if you would like to rent versus own? Then you’ve come to the right place. This article covers both the historical and current monthly costs of renting versus owning.

House Prices – Single Family Homes

Source Data: Zillow

30 Year Fixed Mortgage Rates

Single-family homes increased steadily throughout 2023 in the Las Vegas metro area after homes decreased from their all-time high in August 2022. The decrease is due to higher interest rates making housing less affordable for prospective home buyers. Interest rates began to increase in February of 2022.

Monthly Rents vs Monthly Mortgage Payment*

_{Source: Zillow}

_{The monthly mortgage payment is calculated using the historical single-family housing average, 30-year fixed interest rate with a 20% downpayment and only includes the principal and interest.}

Over the majority of the last 9 years owning made a lot more financial sense versus renting. The chart above shows the monthly cost of renting has been historically higher versus a mortgage payment. The gap between the monthly rent versus a mortgage payment has been eliminated. Currently, renting is cheaper than taking out a mortgage today.

Should you buy or should you continue to rent?

That answer is going to depend on your current financial situation and where in the Las Vegas metro area you are looking to buy. The figures presented in this article represent the average Las Vegas prices, but there are areas in the valley that are cheaper to buy than the average. Alternatively, there are also areas where the purchase price is significantly higher than the mean.

Can you afford a high interest rate today? If so, buying now may make more sense for you in the long-term. The fed has reported (Source: https://www.cnbc.com/select/when-will-interest-rates-drop/) that they will seek to decrease interest rates in the future. Lower interest rates will bring new home buyers into the market and likely push home prices higher.

Interested in buying (or selling)? Fill out my form below and I can connect you to a reputable realtor registered in the Las Vegas Valley.