This is one of multiple articles on why I choose to live and invest in Las Vegas. In this article I will discuss one of the reasons why I believe real estate investments in Las Vegas have a high potential for future appreciation.
Below is a satellite image of Las Vegas.
As you can see, there is a large amount of open land around Las Vegas so you would expect there to be lots of land for expansion. However, things are not as they appear. Below is a map showing (gray) federal land around Las Vegas.
So, while there is a huge amount of vacant land around Las Vegas, it is all federally owned. Las Vegas is virtually landlocked by federal land. State wide, only about 11% of Nevada is in private hands. How much vacant land land is there in the Las Vegas valley? About 35,000 acres. However, a large portion of this land in not usable for residential construction. For example, the largest portion of available land is in the north east, between Nellis AFB and the Nellis Ordnance Test Range. It is the green area between the two blue boxes in the image above. Would you want to live under the path military jet aircraft fly as they travel from Nellis to the test range and back? I don't think you would and I know I wouldn't; military aircraft are extremely noisy so I doubt that this area will be developed for residential.
Once you remove this area and a few areas that are virtually landlocked by federal land you actually have very little available left for expansion. When you have a limited supply of anything and there is a demand for it, prices invariably go up. And, as the economy of Las Vegas recovers ( it is already starting to recover in my opinion), people will come to Las Vegas for job and they will need a place to live and that will mean more residential construction.
In summary, Las Vegas has little room for expansion so the local economy grows, the demand for housing will result in significant and sustained price increases. Also, I think that prices will be very stable; they will not be built on a bubble of get-rich-quick 100% loans. I will explain my views on this in another article.
Contact me if you are considering buying or selling Las Vegas real estate. You will be glad you did.
...Eric
Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Email: EricFernwood@gmail.com
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