Los Angeles Wildfires May Strain Las Vegas Housing Market, Expert Warns

Los Angeles: The wildfires in L.A. are causing quite a stir, and it looks like they might affect the housing market in Las Vegas. An expert mentioned that when people lose their homes, they often look for new places to live, and many might consider moving to Vegas.

Shawn McCoy, a real estate professor at UNLV, pointed out that after wildfires, there’s usually a lot of movement. He referenced a study from Colorado that showed how wildfires impacted housing there. It’s all about the buzz; when fires hit the news, people start thinking about relocating.

Interestingly, a lot of folks are already moving from California to Nevada. In fact, nearly 158,000 people made that switch from 2019 to last year. That’s a big chunk of new residents! But now, with the fires, the pressure on the housing market in Vegas could increase even more.

Daryl Fairweather, an economist at Redfin, noted that while moving to Vegas might not lower fire risks, it could be a more affordable option. With rents in L.A. likely to rise due to the fires, many people might find themselves priced out and looking for alternatives.

McCoy’s research showed that home prices in areas hit by wildfires often drop initially but bounce back within a couple of years. However, homes in desirable locations still hold their value, which means some of the damaged properties in L.A. could be rebuilt at higher prices.

The recent wildfires have been devastating, destroying thousands of homes and leading to evacuations for over 92,000 residents. The impact on the rental market in Vegas could be significant, as those displaced will need new places to stay.

McCoy mentioned that the fires might push rents up in Vegas, not just from those directly affected but also from people nearby who are now worried about future fires. This could lead to a shift in where people choose to live.

Interestingly, homes in Las Vegas actually have a higher risk of major fires compared to L.A. over the next 30 years. So, while some might flee to Vegas, they might not be escaping fire risks entirely.

Overall, while Las Vegas could see an influx of new residents from L.A., it won’t be the only destination for those looking to relocate. The wildfires are reshaping how people view housing options in the region.