Southern Nevada Sees High Rates of Vacancy

While northern Nevada (areas like Reno-Sparks) might be seeing a slight resurgence in home sales, the same cannot be said of the south. Las Vegas and the surrounding areas have actually seen an increase in empty homes. Currently, there are almost 170,000 vacant homes in southern Nevada, almost twice the number of empty homes in 2000 (during the last census).

The housing market bust has taken more than just the wind out of the market’s sales – it’s taking homeowners out of their homes. A very high percentage of the homes now standing empty are foreclosures, most of which were owned by upside down homeowners (those who owed more than the home was worth after the market crash). Quite a few of these homeowners simply handed the homes back to the bank once they realized just how bad their situation really was.

The news continues to get worse for the area, as well. While the state’s Foreclosure Mediation Program has been a good thing for many homeowners, it’s not enough to stem the tide. Currently, home prices are plummeting around Las Vegas (and in many other areas of the state). The largest reason for that continued depression is the increasing incidence of short sales and foreclosed homes on the market. The average price of a home has dropped from almost $300,000 to just over $115,000 in most areas, leaving homeowners holding a very large bag. As forces continue to push home prices lower, more and more homeowners will feel the pinch and the rate of foreclosure is expected to move even higher.

Further fueling the problem is the fact that Nevada’s unemployment rate is not getting any better. No work equates to no money, and more homeowners will face the loss of their homes because of it.