To buy in Vegas or not with looming Colorado River Water Crisis

[Jonathan Blackmore]

Hi everyone,

First time poster and new to Bigger Pockets.  My wife and I just moved back to the United States after 10+ years abroad and were looking to purchase our first home in Las Vegas, NV.  We wanted to buy a home for ourselves and one rental income property in 2023; however, I'm starting to have second thoughts on the looming Colorado River Water Crisis and whether or not we should actually invest in property in vegas at all.   

Another option we are considering is purchasing a rental income property in another market (Los Angeles, Santa Cruz, New York, Denver) and using this income to pay rent for a house for ourselves in Vegas.

While we love Vegas and fully intend to settle down there, I am concerned about the future value of a home or homes that we do purchase there with all the uncertainty about water supply.

I do understand that Las Vegas reclaims 90% of their water to put back into Lake Mead and I want to be optimistic about investing in Vegas, but I'm just really not sure if it is worthwhile to actually invest there.

Any thoughts from real estate professionals on investing in Las Vegas would be much appreciated.

Thank you!

Jono

[Bill B.]

Wait, 50% of the Colorado river water supply goes to LA and 01.8% goes to Vegas, so you’re considering eliminating Vegas and going withLA instead? In what world does that make sense?

Las Vegas paid for and installed a 3rd intake at a lower level than everyone else so that we would get our allocation even if others couldn’t physically get there’s. We use less water than we did 25 years ago when I moved here and had 1/2 the people. 

I’d say the biggest complaint about vegas is it’s basically California east now with more adults in Vegas being from California than born here. The politics are following as those that fled CA are sure they didn’t flee because the laws they passed wrecked it. It used to be 65% cheaper to live in Vegas now it’s barely 50%. 

As bad as it is here, you listed 4 markets that are incomparable as they are so much worse. Whether it’s taxes, insurance, rent control, tenant protections or just an outright hatred of landlords. There are probably better markets than Vegas, btu IMHO, none of those are close.