The Las Vegas Valley is currently experiencing a significant housing shortage, with an estimated deficit of 32,192 housing units as of 2023, according to a report from Zillow. This shortfall has been intensifying over recent years, highlighted by a comparison to 2019 when the deficit was 11,901 units. The study, which utilized data from the U.S. Census Bureau, emphasizes the impact of the COVID-19 pandemic on the housing market.
From 2019 to 2023, the number of housing units in the valley increased from 899,870 to 935,949. However, this growth has not kept pace with the area’s population increase. Zillow’s senior economist, Orphe Divounguy, noted that while the valley added about 36,000 housing units during this period, family growth outpaced this supply, leading to the current deficit.
Several trends have contributed to this situation. National population growth is slowing, which affects housing markets in the long term. In the short term, housing construction is decelerating due to increased inventory and downward price pressures, causing builders to reduce new developments. Despite this, family formation may also slow down in the future…