Between 2018 and 2023, Nevada’s housing market became a rollercoaster for middle-income buyers. As home prices soared during the pandemic, many saw a chance to build equity while interest rates were low. But that window quickly narrowed.
By the time rates climbed, affordability had slipped out of reach in many neighborhoods. For households earning under $250,000 a year, the dream of homeownership grew more complicated—sometimes just out of reach, sometimes still within it, but rarely simple. What unfolded was a tug-of-war between opportunity and constraint, played out across the state’s fast-changing cities and towns.
Who Is Buying Homes in Nevada?
Despite fears that out-of-state buyers were taking over Nevada’s market, most home purchasers in 2018–2023 were local Nevadans. Even during the pandemic influx, data suggests the majority of buyers were Nevada residents. However, the mix of buyers did change internally.
The share of first-time buyers dropped to historic lows by 2022–2023 as prices soared. Nationally, only about 26% of home purchases were by first-time buyers in 2022, the lowest share since tracking began in 1981. This pattern held in Nevada: many younger or first-time buyers were priced out, leaving the market dominated by repeat buyers who often already had equity from a previous home.
Demographics Shift Toward Older Buyers
The typical buyer’s age in Nevada crept up as younger families struggled to buy. By 2023 the median age of first-time homebuyers was about 38 nationwide, up from the early 30s a decade prior. Many Nevada buyers were empty-nesters or established professionals rather than 20-somethings starting out.
In fact, 73% of homebuyers in 2023 had no children under 18 at home – meaning a large portion were either singles, couples without kids, or parents whose children had grown. Married couples (often dual-income) still made up the majority of purchasers (around 60% of buyers), but single buyers also played a role. Notably, single women represented roughly 20% of recent homebuyers, a growing segment despite the financial challenges.
The Impact of Investors on the Housing Market
While most households were buying homes to live in, a subset also ventured into investment or rental property purchases. These were usually “mom-and-pop” investors – for example, a local family buying a second house to rent out for extra income.
Nevada’s hot market attracted big investors as well, and at one point investors purchased about 18–20% of all homes sold in the U.S. (hitting a peak around early 2022). Las Vegas was one of the hot spots: in 2021, investors grabbed roughly one in five home sales in the Vegas area, often targeting starter homes and condos that budget-minded locals also sought. This added competition for regular buyers. Investor activity soared in 2021 and then dropped sharply by 2023 as the market cooled.
What Homes Are They Buying?
Single-Family Homes Remain the Top Choice
The quintessential purchase for Nevada households under $250K has been the single-family home. Whether it’s a detached house in a Las Vegas suburb or a small home in a rural town, most buyers in this income range sought traditional houses with a yard.
Even many renters in Nevada live in single-family houses (33% of renter households, compared to 27% nationally), which reflects the state’s development pattern of sprawling home neighborhoods. For owner-occupiers, single-family homes (including both detached houses and attached townhomes) made up the bulk of sales from 2018 to 2023.
The Growing Appeal of Smaller and Attached Homes
As prices climbed, more budget-conscious buyers turned to condominiums, townhouses, or other attached homes, which tend to be cheaper than detached houses. Builders responded by offering smaller single-family designs and more townhome projects.
By 2024 the median new home size nationwide had shrunk to about 2,150 square feet – the smallest in 15 years – as buyers showed willingness to trade size for affordability. In Nevada, especially the Las Vegas area, this trend was evident with new townhome communities and smaller-lot homes being built to meet entry-level demand.
Condos appealed to many singles and retirees on a budget, offering lower prices and less maintenance. However, Nevada’s housing stock historically has fewer condos and townhomes than some states (the state long emphasized detached homes), so supply was limited.
Manufactured Homes as an Affordable Alternative
Some Nevada households in this income bracket chose manufactured homes (mobile homes) as a cost-saving option. These homes, often located in mobile home parks or on leased land, cost significantly less than site-built houses.
Nevada has a sizable number of manufactured housing units – around 67,000 occupied mobile homes as of 2021 – which is roughly 6% of all households. That said, the stock of mobile homes has actually declined over time (down about 7% from the late 2000s). Zoning and redevelopment have reduced some older mobile home parks.
Home Sizes Trend Smaller as Affordability Concerns Grow
The homes bought by this group during 2018–2023 varied in size and quality, but many were moderate-sized houses (often 1,500–2,000 square feet, 3 bedrooms) for families, or smaller condos (~1,000 sq ft, 2 bedrooms) for singles/couples.
During the boom, buyers who could afford more space often upsized to larger homes (taking advantage of low interest rates to get an extra bedroom or a home office). But by 2022–2023, buyers started downsizing expectations due to high costs. New data shows the nationwide median new home size dropped by about 150 square feet from 2019 to 2023 as affordability became key.
Housing Decisions: Upsizing, Downsizing, and Second Homes
Upsizing During the Pandemic Boom
In the late 2010s and especially 2020–2021, many Nevada families used the favorable conditions to upsize. With mortgage rates at record lows and work-from-home on the rise, buyers sought bigger houses or more outdoor space.
For example, a family renting a small apartment might buy their first house, or an existing homeowner might sell their starter home and move up to a larger one with an extra bedroom or a yard for the kids. The pandemic stimulus (low rates and savings accumulated during lockdowns) enabled some middle-income households to afford more home than they previously could.
The Downsizing Dilemma
Downsizing – selling a larger home to buy a smaller, cheaper one – proved tricky in Nevada’s hot market. In theory, empty-nesters or retirees often downsize to reduce expenses or maintenance. But from 2018–2023 downsizing was not very rewarding: smaller homes were in short supply and often not much cheaper relative to the equity sellers had in their big home.
For instance, an older couple in Las Vegas might consider selling their 4-bedroom house, but find that a 2-bedroom condo costs nearly as much as what they’d net from the sale. As a result, some chose to stay put rather than downsize, since selling and buying in the same high-priced market yielded little financial gain.
Second Homes and Investment Properties
Despite being “budget-conscious,” some higher earners in the under-$250K bracket did purchase second homes during this period. This was especially true in the pandemic years when vacation-home markets boomed nationwide.
In Nevada, such buyers might be a Las Vegas household buying a cabin or condo at Lake Tahoe, or a professional from Reno picking up a small vacation place in rural Nevada. Nationally, vacation home sales surged in 2020–2021. However, the typical household under $250K could rarely afford a true second home purely for leisure – those who did often had dual purposes (e.g. renting it out part-time or planning to retire there).
The Interest Rate Rollercoaster
From Historic Lows to 20-Year Highs
One of the biggest factors shaping homebuying in 2018–2023 was the roller coaster of mortgage interest rates. At the start of this period, rates were relatively low (around 4–5% in 2018) and then plunged to historic lows (~3%) by 2020–2021 as the Federal Reserve cut rates during the pandemic.
These ultra-low mortgage rates greatly boosted affordability: a family could suddenly afford a much higher-priced home for the same monthly payment, compared to a few years prior. This was a key driver of the buying frenzy in 2020–2021.
However, the situation reversed sharply in 2022. To fight inflation, the Fed raised rates, and by late 2022 the typical 30-year mortgage rate had shot up past 6% and kept climbing. By the fourth quarter of 2023, 30-year mortgage rates averaged about 7.3% – a level not seen in over 20 years – compared to just 2.8% in late 2020.
Affordability Crisis Emerges
The effect of rising rates combined with high prices was to slam the brakes on many would-be buyers in 2022–2023. In Las Vegas, the share of homes affordable to a typical middle-income family dropped to only about 14% by late 2023.
A decade earlier, during the post-2008 crash, over 80% of homes were affordable to median families in Las Vegas – a dramatic contrast. Statewide, Nevada’s affordability index hit an all-time low at the end of 2022 and into 2023.
For many households under $250K, this meant tough choices: either postpone buying, downsize their ambitions, or find additional cash for a bigger down payment to reduce the loan. Indeed, debt-to-income ratios soared – many Nevada buyers were spending a dangerously high portion of their income on mortgage payments.
The “Rate Lock” Effect
By 2022–2023, many existing homeowners held mortgages with rates under 4% (indeed, over 60% of U.S. mortgage holders have rates below 4%). In Nevada, these owners were reluctant to sell their homes and lose those low-rate loans.
A move-up buyer who might have sold their starter home to buy a bigger one now hesitated – if they took out a new mortgage at 7%, their monthly cost could double for a similar loan amount. This reduced the supply of homes for sale, as fewer current owners put their houses on the market. For budget-conscious buyers, that meant even less inventory to choose from, compounding the challenges.
Regional Housing Market Differences
Las Vegas Metro Area
Home to about 75% of Nevada’s population, the Las Vegas-Henderson-Paradise metro drives the state’s overall trends. From 2018 to 2021, Las Vegas home prices climbed rapidly. During 2021–2022, the Vegas area experienced record price growth of around 16% per year for resale homes, finally surpassing its 2007 housing-boom peak prices.
The median sale price for an existing home in Las Vegas hit roughly $420,000 at the peak in spring 2022 (up from the low-$300Ks just a few years prior). This made it increasingly tough for local buyers whose incomes didn’t rise nearly as fast – during 2019–2021, Nevada’s median home value jumped ~17% while median household income rose only ~5%.
Within the Las Vegas valley, some sub-areas are pricier than others. For example, Henderson (a suburb popular with families) had a median price of about $455,000 in late 2023, while North Las Vegas (known for more starter homes) was around $404,000. Las Vegas proper fell in between at roughly $425,000.
Reno-Sparks Area
Northern Nevada’s largest metro had an even more pronounced affordability crunch. Reno’s economy attracted tech companies and California transplants in the late 2010s, driving housing demand. By the end of 2021, Reno’s median home price had reached a record $521,750 – a stunning 29.5% increase from the year before. In mid-2022 it surged even higher (some months saw medians around $600,000 or more).
This put Reno among the least affordable markets relative to local incomes. The affordability index for Reno dropped to about 17% in late 2023 (meaning only 17% of homes were affordable to a median-income family, even worse than Las Vegas’s 14%).
The run-up was fueled partly by out-of-state buyers (especially from California) seeking cheaper real estate; Reno led the nation in certain inbound migration metrics in 2021. That said, data showed locals still accounted for the majority of purchases in Reno, but they had to compete with deeper-pocketed newcomers.
Rural Nevada
Outside the two big metros, Nevada’s housing is a patchwork of small cities and towns (Carson City, Elko, Pahrump, etc.) and rural communities. Home prices in these areas are generally lower than in Las Vegas or Reno.
For instance, Carson City (the capital, population ~58,000) had a median home listing price around $525,000 in early 2025 – still high in absolute terms, but a bit less frenzied than Reno’s market. Rural counties often have median prices in the $200Ks or low $300Ks, and many residents in those areas own property outright or have small mortgages.
However, lower incomes in rural Nevada offset the cheaper prices. Also, homeownership rates are higher in rural Nevada – in most rural counties, the majority of households own their homes (often 70% or more), far above the state’s urban renter-heavy ratios.
The Last Decade vs. 2018-2023: A Striking Contrast
From Housing Crash to New Price Records
In 2008–2012, Nevada was reeling from the housing market crash. Home prices plummeted after 2007, with Nevada among the hardest-hit states. By 2011, home values in Las Vegas had fallen roughly 60% from their bubble peak, leaving many budget-conscious families either foreclosed on or underwater on their mortgages.
Investors swooped in to buy foreclosed homes at pennies on the dollar. Indeed, at the peak of the foreclosure crisis about 42% of all home sales in Las Vegas were bank-owned (foreclosure) properties – a startling figure that shows how dominant distressed sales were around 2010.
In contrast, during 2018–2023 foreclosures were negligible (under 1% of sales). By 2015–2017, prices had recovered somewhat but were still below the 2006 highs. Fast forward to 2018–2023: prices not only recovered but blew past the mid-2000s peaks, reaching new records.
The Homeownership Recovery
Nevada’s homeownership rate tells the tale. Around 2006, just before the crash, homeownership was at a high (~62% of households). The foreclosure wave then pushed many families back into renting. Nevada’s homeownership rate fell to about 54% by 2014 (meaning nearly 46% of households were renters, the highest renter share on record for Nevada).
By 2018–2019, homeownership was rising again. During 2018–2021, Nevada’s homeownership rate climbed back up to around 59–61%. In fact, the pandemic home-buying boom bumped it up further (briefly above 60%). So compared to the post-crash trough, more budget-conscious households in 2018–2023 were able to become owners again.
Investor Activities in Different Eras
Both periods saw investor activity, but its character differed. Circa 2011, Nevada’s housing was a bargain hunter’s paradise – large investment firms and flippers bought up foreclosed homes en masse. Those investors often turned houses into rentals, which is one reason Nevada’s renter percentage stayed high through the mid-2010s.
From 2018–2023, investors were buying into rising prices, not rock-bottom prices. For regular households, this meant that in the earlier decade, you might have been renting a former foreclosed home from an investor; in the later period, you might find yourself outbid by an investor on a starter home. The net effect was that competition from investors was an issue in both periods, but the 2010s investors provided needed liquidity in a crash, whereas the 2020s investors sometimes exacerbated the supply shortage in an upswing.
From Downsizing to Upsizing and Back
During 2008–2017, downsizing was more common among older homeowners (especially after the recession). Many Baby Boomers in Nevada, finding themselves with large houses and new financial realities, sold their big homes and either moved to smaller homes or left the state for lower-cost areas.
By contrast, in 2018–2023, upsizing was more prominent in the 2020–2021 window, as even older owners with lots of equity sometimes upsized or bought second properties rather than downsizing. One could say that in the 2010s the housing market was in a healing phase, whereas in the late 2010s/early 2020s the market entered a new accumulation phase where people held onto assets and even doubled down with more property if they could.
In summary, Nevada’s homebuying landscape for middle-income, budget-minded households has transformed dramatically from the post-crash years to the recent boom. A decade ago (2008–2017), the story was distress and gradual recovery – low prices, high hurdles to purchase, and many investors capitalizing on bargains. By 2018–2023, the narrative flipped to surging demand, rapidly rising prices, and an affordability squeeze on locals, even as more of them managed to become homeowners again during the boom.
References
- Nevada among top states where home prices outpace wages, report says. Reno Gazette Journal.
- Comprehensive Housing Market Analysis for Las Vegas-Henderson-Paradise, Nevada. U.S. Department of Housing and Urban Development.
- HDB-202 Tenure and Type of Structure for Nevada Renters. Nevada Housing Division..
- 2023 Annual Housing Progress Report. Nevada Housing Division.
- Size of homes are shrinking in U.S.. Las Vegas Review-Journal.
- Real Estate Investor Home Purchase Report. Redfin News.
- Investor Home Purchases Fell a Record 49% in the First Quarter. Redfin News.
- Share of Homes Bought With Cash Ticks Down From November Peak. Redfin News.
- Reno-Sparks median home price ends 2021 with another record high. Reno Gazette Journal.
- Reno median home price under $600K for first time since April. Reno Gazette Journal.
- Carson City, NV 2025 Housing Market. Realtor.com.
