[EA]

Do you think Las Vegas costs will rise to California levels, or near California levels?

I think legal weed and Raiders will drive up our cost of living along with all the investors snapping up cheaper properties. I was considering moving to San Diego after a recent visit, but I can't even begin to afford it. Everything under 300k is a trailer on a rented lot (800-1000 a month lot rent) An ok house is over 400k. A house like the one I am in now is 600k-1 million.

I know a lot of people in Colorado and Washington. Prices skyrocketed there after weed and it seems to be happening here.

What say you guys?

[ND_Irish]

Originally Posted by EA

Do you think Las Vegas costs will rise to California levels, or near California levels?

I think legal weed and Raiders will drive up our cost of living along with all the investors snapping up cheaper properties. I was considering moving to San Diego after a recent visit, but I can't even begin to afford it. Everything under 300k is a trailer on a rented lot (800-1000 a month lot rent) An ok house is over 400k. A house like the one I am in now is 600k-1 million.

I know a lot of people in Colorado and Washington. Prices skyrocketed there after weed and it seems to be happening here.

What say you guys?

While the cost of living may increase slightly due to the things you mention, I doubt it will be as dramatic as Colorado and Washington state. Both of these states have more diversified economies than Nevada currently has and likely will have in the foreseeable future. While I do not necessarily agree with the perception, Nevada is still seen by many as not the ideal place to raise a family which also puts a damper on any significant increase in the cost of living.

[BBMW]

Salaries in Vegas won't support LA cost of living levels. If the got close, people would start moving back to LA. What drives up the COL in most big cities is a large number of high paying professional jobs, and usually in a spread of fields. Vegas really doesn't have that, and it's a limiting factor.

[EA]

The median wage in California is 66k
Median house is 500K +


66k does not begin to afford a 500k house.

I can afford a shack in Compton with my union pay that's above the California median wage.

[BBMW]

I don't think you can just use median wage as a factor. The median wage in NYC is less. The number that pops up immediately in $50K-ish. Yet they're building million dollar condos like Nabisco bakes Oreos. I think the relative small percentage of mega-rich, very rich, and merely rich soak up a disproportionate amount of real estate, and that has a trickle down effect of driving up prices.

[crabtrees]

Correct, the median salary number in California is extremely misleading. I'd guess that 80% of the population make less than that. Northern California has multiple professional sports organizations and all of Silicon Valley. Southern California has multiple professional sports organizations and all of Hollywood. There are millions of people making insane amounts of money....and then there are the other 80% of the population making less than what they need to affordably live in California. For some reason people would rather stay in California and live in debt or barely scrape by.

[EA]

Vegas ain't much better. Houses start at 200k and go up quickly from there. 1500-2500 a month. That's a lot of money.

[basnobua]

Originally Posted by crabtrees

Correct, the median salary number in California is extremely misleading. I'd guess that 80% of the population make less than that.

That might be true for the mean income, but, by definition, that cannot be true for median income.

[orca17]

Originally Posted by crabtrees

Correct, the median salary number in California is extremely misleading. I'd guess that 80% of the population make less than that.

That is mathematically impossible. By definition, the median is the point at which 50 percent fall above and 50 percent fall below. I believe that you are confusing median with mean, which is an average.

[lvmensch]

I am not convinced your thesis is true. Denver for instance was rising as fast before pot as after. Phoenix, Dallas and Las VEgas are pretty cheap...Around 52% to 54% for rent and other costs with NYC the 100%. Denver is around 68% and Seattle 79%. LA is 74% and SF 110%.

There is considerable pressure on prices in Las Vegas....mostly because the inventory is remaining below 1 month. We are likely to see 1 or 2% per month price increases driven by that alone. I don't have the faintest idea if that will continue over the winter doldrums but it is likely until then.

And I have no idea whether this continues next year. But given the present picture I would think a home purchaser has an excellent chance of breaking even in a year or 18 months.