Buying Your First Home in Las Vegas, NV? Here’s How Much Money You Need to Make
You need close to a six-figure income to buy a starter home.
Las Vegas, NV, is renowned for its entertainment, amenities, attractions, and gorgeous weather. However, Las Vegas isn’t just the entertainment capital of the United States; it’s also home to a booming real estate market that’s seen significant growth in recent years.
For many, buying a home in Las Vegas is a dream come true, but it’s also important to know how it will impact your finances. From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
So whether you already live in Sin City or are looking to relocate to the area, here’s a breakdown of the income you’ll need to purchase your first home in Las Vegas.
Check out our original report for a detailed nationwide analysis.
How much income do you need to buy a starter home in Las Vegas?
The median sale price of a starter home in Las Vegas is $299,100. In order to afford this, first-time homebuyers in Las Vegas should make $92,011 per year, up 6.2% from 2023. However, the median income in Phoenix is $78,212, meaning the typical resident often can’t afford a starter home.
As expected, starter homes in Las Vegas are much more affordable than the average home (all price brackets combined; see methodology for details). In order to afford any median-priced home in the area, you’ll need to make $113,186 (as of October 2023).
Nationwide, you need an income of $75,849 to afford a typical starter home, which costs an average of $240,000. The average U.S. household earns an estimated $84,072.
First-time homebuyers’ guide to the Las Vegas housing market
Phoenix was an especially popular migration destination during the pandemic housing crunch, as homebuyers searched for sunshine and affordability. This trend continued after the pandemic – Las Vegas was the second-most popular metro for relocating homebuyers to end 2023. This influx has boosted house prices by 26% since January 2021, from $313,000 to $425,000 in April 2024. House prices have more than doubled in the past decade.
Climate risks are a major concern in Las Vegas, though. The city is in the midst of a decades-long megadrought plaguing the Southwestern U.S., and recently experienced a record-breaking summer for heat. The average temperature was 97.3° F in July, with 10 straight days at or above 110° F. Experts predict that these trends will continue as climate change worsens.
The desert oasis is home to world-renowned amenities and attractions throughout its many neighborhoods, like the Las Vegas Strip, Fremont Street Experience, Stratosphere Tower, and Fountains of Bellagio. Further out, the Red Rock Canyon is beloved for its recreation and scenic views.
Some popular neighborhoods in Las Vegas include Angel Park, Centennial Hills, and Charleston Heights.
What does a typical down payment look like for a starter home in Las Vegas?
Here are some common down payment amounts for a typical $299,100 starter home in Las Vegas:
| Down payment percentage | Down payment amount |
| 3% down payment | $8,973 |
| 3.5% down payment | $10,469 |
| 5% down payment | $14,955 |
| 10% down payment | $29,910 |
| 15% down payment | $44,865 |
| 20% down payment | $59,820 |
Down payments can range from 0% to 100% of the total house price, depending on your budget, loan type, and long-term priorities. While experts have historically recommended budgeting for a 20% down payment, the increasing cost of homes and continued sluggish wage increases has led to a 15% down payment becoming more common.
Some loan types allow for lower down payment amounts. For example, a Federal Housing Administration (FHA) loan requires just 3.5% down, while the lowest possible down payment for a conventional loan is 3%. These amounts typically depend on your credit scores, so buyers with higher credit scores may qualify for lower down payments.
What is the typical mortgage payment for a starter home in Las Vegas?
The typical monthly mortgage payment for a starter home in Las Vegas is $2,300. This assumes you put 3.5% down and have around a 7% interest rate.
If this payment sounds too high, you could consider renting an apartment in Las Vegas. The average rent price is $1,931, possibly making it a better option while you save for a down payment on a house. You can also use an affordability calculator to see what you can afford based on your income and down payment.
What should you do next?
If you’re in the market for your first home in Las Vegas, it’s important to understand how much house you can afford. Take your annual income, credit score, the current mortgage rates, and local market trends to make a decision that works best for you.
From there, a Las Vegas agent can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, check out Redfin’s First-Time Homebuyer’s Guide.
Methodology
Redfin divides all U.S. properties into five buckets based on Redfin Estimates of homes’ market values. There are three equal-sized tiers, as well as tiers for the bottom 5% and top 5% of the market. Redfin defines “starter homes” as homes whose sale price fell into the 5th-35th percentile of the Redfin Estimate tier.
We calculated the annual income needed to afford a starter home by assuming a buyer spends no more than 30% of their income on housing payments. Housing payments are calculated assuming the buyer made a 3.5% down payment and also take a month’s median sale price and average mortgage-interest rate into account.
The national income data is adjusted for inflation using the Consumer Price Index. 2024 income is estimated based on projections from the U.S. Census Bureau’s (ACS) 2022 median household income using the 12-month moving average nominal wage growth rate. The rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume housing payments include the mortgage principal, interest, property taxes, homeowners insurance, and mortgage insurance (when applicable).
All data sourced February 2024 unless otherwise stated.
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