The high-rise market has been flat, stable over the course of the pandemic. That is opposed to the free-standing home, condo and townhome market which has shown increases in prices and decreases in inventory over the last year.
There is approximately an 8 1/2 month inventory of high-rise properties for sale, at the current rate of sale. That is about average for over the last few years. The median selling price per square foot as of March, 2021 for sales over the last 6 months, was $321.00. That is a $3.00 per sq. ft. decrease from the same calculation I did December 2019. As of March 3,2021 there were 591 high-rise properties listed for sale.
Overall, the condo/hotel market has under performed, as oppose to the conventional high-rise properties, over the last year. That was to be expected as it is heavily dependent on visitor traffic to Las Vegas. There is considerable inventory in hotel/condos right now, depressing the prices. When the Country opens back up, the prices could very well show some good increases.
At one point, over 90 high-rise projects were projected for the Las Vegas area. Most never broke ground. It is anticipated that for a new high-rise project to be profitable, the cost per sq. ft. would need to be in the area of $600.00. If the demand for this product should increase, prices could significantly rise, given that the likely hood of new projects being developed, over the next few years, is very small. Prices would literally have to double, before builders would have the incentive to come into this marketplace.
