LAS VEGAS (KTNV) — The recent government shutdown and economic uncertainty have many potential homebuyers questioning whether now is the right time to purchase a home. While Las Vegas home prices have dipped slightly, a new report reveals that homeownership remains out of reach for many local families.
WATCH | Is now the right time to buy a home in Las Vegas?
The latest numbers from Las Vegas Realtors show home prices declining both from last year and the previous month. The median price for a single-family home in September was $470,000, down $10,000 from August.
However, even with this shift, many families tell me owning a home still feels unattainable. A new UNLV report shows the average household income falls short by nearly $40,000 of what's needed to afford a median-priced home.
Income gap creates housing challenges
The median home now costs around $470,000, meaning a family would need to earn about $119,000 a year to afford it. But the median income in Clark County is only $80,000, leaving a significant gap.
"Even if you are the median family in Nevada, you are still $40,000 short of even being close to being able to afford a house," said Nicholas Irwin, housing researcher and one of the authors of the UNLV Lied Research Institute report.
Irwin said that gap affects more than just families — it impacts the entire local economy.
"That makes it less desirable for new folks to move in, less desirable for businesses to come in," Irwin said.
Financial strategies to bridge the gap
Las Vegas financial advisor Steve Budin said even families making around $80,000 a year can build toward a down payment with strategic planning.
"Ask for a raise. Maybe there are overtime opportunities. Check your withholdings — or pause your 401k contributions for a while. Every little bit helps increase your take-home pay," Budin said.
On the spending side, he recommends tracking expenses for just 30 days, which can be a game changer.
Small daily savings can add up significantly. The average cup of coffee in Las Vegas costs about $5. Skipping that one coffee a day adds up to $150 a month, or about $1,800 a year.
Adding in cutting just one restaurant meal a week — roughly $60 a month — could result in saving nearly $2,500 a year without dramatically changing your lifestyle.
"You save five or seven dollars a day, that's $250 a month — $3,000 a year. In two or three years, that's your $15,000 FHA down payment," Budin said.
FHA loans require just 3.5% down, meaning someone could buy a $450,000 home with about $16,000 saved for a down payment.
To reach savings goals faster, Budin recommends setting up automatic transfers from checking accounts into high-yield savings accounts, so savers don't even see the money they're putting away.
Local residents remain hopeful
Syble Johnson has lived in Las Vegas for six years and, like so many locals, finds owning a home feels out of reach.
"Yeah, it's really hard, especially when you're trying to make ends meet," Johnson said. "You've got to have that down payment."
Despite the challenges, Johnson remains optimistic about the future housing market.
"I'm hoping, that it stabilizes out and brings the cost of housing down, because it's high," Johnson said.
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