Las Vegas’s attract of heat climate, no state-income tax and low property taxes—plus an overabundance of world-class eating and leisure—are dependable attracts for prosperous sorts searching for a sunny desert locale to name dwelling.
One of many fastest-growing metro areas within the U.S., Las Vegas has been setting every kind of actual property benchmarks. Whereas the town has slowed some because the heady days from late 2020 by 2022, restricted stock has continued to maintain the market transferring. Led by a $21.25 million sale in The Summit Membership in Summerlin, Las Vegas simply noticed its luxurious dwelling market report its greatest August in historical past, with essentially the most gross sales since June 2022, in keeping with Las Vegas Realtors.
However that energy has made discovering the fitting dwelling on the proper value tougher, so listed here are a handful of different desert spots that supply their very own distinctive charms and way of life benefits, usually with much less eye-popping value tags.
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Cabo San Lucas, Mexico
Located the place the Sea of Cortez meets the Pacific Ocean on the tip of the Baja Peninsula, Cabo San Lucas (inhabitants: 200,000) boasts a mountain-desert-ocean setting distinctive within the Western Hemisphere. Lengthy a well-liked vacation spot amongst Californians in search of a close-by escape, Cabo has grown to draw dwelling seekers from farther afield, lots of whom are drawn to the relative bargains afforded by Mexican peso-denominated prices.
In response to Juan Diaz Rivera, managing companion of the Company Los Cabos, the world was once primarily regarded as a spot the place Individuals got here to purchase second houses, however the pandemic modified this dynamic eternally.
“With its low population-to-resources ratio, dry local weather and ocean air, Cabo has develop into a haven for Individuals and, for the primary time, Mexicans seeking to reside right here full time and commute to work,” mentioned Diaz Rivera, who notes that townhouses that have been value US$500,000 are actually promoting for over a US$1 million, and that in-demand communities like Pedregal don’t have any stock beneath US$2.5 million.
“The flexibility for Individuals to really feel like they will fly out and in—or within the worst case, drive 18 hours north to the border—is now matched by rich Mexicans which have the very best quality of life within the nation and may fly to work a couple of days every week,” Diaz Rivera added.
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Susanna Powell of Sotheby’s Worldwide Realty mentioned whereas Cabo San Lucas provides a much less established actual property panorama when in comparison with Las Vegas, the potential for substantial progress in Cabo is greater.
“The life-style in Los Cabos is actually one thing that may’t be replicated. The unparalleled fishing, golf, tradition and meals scene mixed with ocean dwelling places Cabo in a singular place,” Powell mentioned.
As a result of the highest-priced actual property has predominantly been nestled alongside the beachfront, Powell observes, “the restricted provide of those beachfront properties can’t catch as much as demand, making them coveted investments which can be poised to understand considerably over time.”
Powell additionally has observed regular curiosity in Cabo’s golf scene, citing the vacation spot’s distinctive mix of desert landscapes, ocean vistas and mountainous terrain as a serious draw. “This distinctive fusion of components units Cabo’s golf programs aside from Las Vegas, the place such differentiators aren’t available,” she mentioned.
The robust market efficiency noticed in 2021 and 2022 has led to a restricted provide of high-priced residences in 2023, supporting present pricing and creating an affordable expectation for additional appreciation, in keeping with Powell.
“The area has wholesome market situations and its tourism business is remarkably resilient. 5 main new resorts are coming to the area,” she mentioned. “Funding-wise Cabo is difficult to beat.”
Moab, Utah
With a inhabitants of simply over 5,000, Moab, Utah, is surrounded by two nationwide parks (Arches and Canyonlands), an assortment of well-maintained state and metropolis parks, and an in depth path community.
“For these in search of a best-of-both-worlds situation, Moab is the proper mix of a scenic desert panorama and a winter getaway. With a extra temperate summer season local weather than Las Vegas, plus the good thing about a brief, gentle snowy winter, residents can get pleasure from all 4 seasons inside a shocking desert backdrop,” mentioned Molly Jones of the Company Salt Lake Metropolis.
Well-known for its clear air and darkish skies, Moab is positioned in a county the place greater than 95% of the land is public.
“High quality of life for the outdoorsy individual is phenomenal. You’ll be able to drive in any route in 10 minutes and be in stunning desert solitude with bluebird skies. Many people transfer right here to enhance their psychological or bodily well being,” explains Becky Wells of Summit Sotheby’s Worldwide Realty.
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“It’s a spot the place you will get to know the proprietor of the restaurant or artwork gallery and I see folks transferring from greater cities who actually like that. It’s thrilling to them to be acknowledged and greeted quite than dwelling in a sea of strangers,” she added.
As of September, in keeping with Jones, the median record value in Moab had elevated by virtually 4% 12 months over 12 months, and days on market had reduce in half, going from over 150 days to simply over 60 days.
Continued enlargement of high-end inns and retail venues has helped drive the luxurious market, and the presence of a regional airport with service from Salt Lake Metropolis and Phoenix is making the world extra accessible than ever.
“There are a handful of recent luxurious communities of their first phases of growth, as nicely which provides unparalleled alternative to get it now earlier than all of the facilities are totally constructed out and demand and pricing will increase,” Jones mentioned.
Moab’s luxurious actual property costs are nonetheless fairly reasonably priced, in keeping with Wells.
“While you examine us to different resort cities that supply comparable outside existence, you will get much more to your cash right here. You’ll be able to look to spend between $500 to $800 per sq. foot, quite than $1,000 to $2,000 per sq. foot in neighboring resort cities.”
“Second houses and funding properties carry out rather well resulting from our excessive customer depend. Numerous our newer residents in Moab got here right here on trip and have been so moved by the surroundings, they both relocated or purchased a second dwelling right here. It’s actually a particular place and connects folks with nature,” Wells mentioned.
Palm Springs, California
Nestled in Southern California’s scenic Coachella Valley, the area’s most well-known handle, Palm Springs (inhabitants: 45,000), has firmly positioned itself as a extra handy different to Las Vegas.
“We’re higher than Vegas as a result of in the event you ever need to take a daytrip you might be within the mountains, seashore or downtown L.A., Orange County, San Diego in two hours or much less by automobile, “ mentioned Eric Meeks of Re/Max Desert Properties. “If Leonardo DiCaprio, Gary Oldman and the Kardashians assume the desert is a sizzling place to personal, who’s to argue?”
Lured partially by a thriving arts and cultural scene, headlined by the Coachella Competition and the newly-opened Acrisure Area, an entire new era of millionaires are transferring to the Palm Springs space, in keeping with Meeks.
“Below Covid, a wholly new demographic moved to the desert searching for free area to trip a motorbike, suntan, swim, hike and benefit from the outdoor. I name them techno-urbans, they usually’re nonetheless coming,” he added.
Palm Springs was one among a handful of U.S. markets to see a triple-digit enhance in luxurious gross sales quantity in 2022 in comparison with the pre-pandemic period in 2019, in keeping with MLS knowledge, and the luxurious housing market exhibits no indicators of easing.
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The elevated curiosity has depleted the availability of houses obtainable on the market, pushed up costs, and created a heated setting the place consumers transact in money, forgo normal dwelling inspections and value determinations, and even pay the sellers’ closing prices to verify the deal earlier than the next supply comes alongside.
“Luxurious dwelling consumers from numerous markets are looking for the attract of Palm Springs’ gated communities, the place desert opulence seamlessly intertwines with peace and safety,”” added Jeff Kohl, director of architectural properties, Desert Communities, on the Company.
Scottsdale, Arizona
The booming metropolis of Scottsdale (inhabitants: 245,000) combines pure splendor and concrete class amid the enchanting Sonoran Desert. Throw within the near-constant sunshine and gentle winters, and it’s simple to know why the outdoor-oriented way of life continues to draw transplants from all over the world. A variety of nationally lauded resorts and spas are scattered all through the town, which has its personal personal airport and provides shut proximity to Phoenix Sky Harbor’s myriad connections.
“ Scottsdale provides a multifaceted enchantment that surpasses Las Vegas,” mentioned Scott Grigg with Grigg’s Group of the Altman Brothers. Grigg known as out the greater than 200 golf programs, resorts, mountaineering trails, nightlife and tax benefits.
Scottsdale’s actual property market is a well-kept secret for these searching for luxurious properties, in keeping with Grigg.
“What’s shocking to many is the affordability of those houses when in comparison with main metropolitan areas,” he mentioned. “Within the luxurious market, demand stays sturdy. … A number of new residential developments and luxurious communities have been within the works, aiming to satisfy the rising demand for upscale housing choices.”
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Scottsdale was coined “the West’s Most Western City” by the native chamber of commerce in 1947, and whereas the town has fully modified since then, lots of the components that initially introduced new residents to Scottsdale stay alive and nicely, in keeping with Allison Cahill, designated dealer and luxurious agent for the Company, and president-elect for the Scottsdale Space Affiliation of Realtors.
“There’s something magical in regards to the sunsets, … and although Scottsdale is positioned within the desert, there are many locations to get pleasure from boating, kayaking and paddle boarding, together with floating down the Salt River and having fun with the scenic Bartlett Lake nestled within the Tonto Nationwide Forest. Each are simply minutes from the town heart,” Cahill mentioned.
In an evaluation of the Scottsdale luxurious market (outlined as properties over $2 million) for 2023, Cahill discovered that the median gross sales value since January remained unchanged at roughly $2.7 million, with a median record value of $697 per sq. foot and the common bought value of $665 per sq. foot.
“To place our common pricing in perspective, it’s fascinating to look again to knowledge of our final regular market, which was in October of 2019,” she notes. “At the moment, gross sales have been at US$484 common gross sales value per sq. foot and common record value at US$511 per sq. foot.”
Whereas saying the numbers present a balanced market, Cahill notes it’s as a result of stock remains to be traditionally low and demand is slightly below a traditional market.
Sedona, Arizona
Sedona has usually been seen as a new-age mecca, providing the chance for renewal by way of infinite outside adventures. With its gorgeous Crimson Rock cliffs and awe-inspiring mesas, Sedona feels a lot farther away than the two-hour drive that separates it from city Phoenix.
“Not like the bustling leisure scene of Las Vegas, Sedona offers a serene setting, making it a great location for these looking for tranquility with out compromising on luxurious. The tax charges in Arizona are aggressive, and the true property market in Sedona has seen constant progress, making it a sound funding with an enormous upside on way of life,” mentioned Jack Johnson, an agent with Legacy Sedona.
In response to the native MLS, there was a noteworthy enhance within the common dwelling sale value in Sedona; final 12 months, the common stood at $1.63 million, and in 2023 it has risen to $1.75 million.
“This means a constructive pattern concerning the worth of luxurious properties within the space,” mentioned Tod Christensen of Russ Lyon Sotheby’s Worldwide Realty. “The attract of Sedona, with its pure magnificence, mixed with its proximity to the varied facilities in Phoenix, continues to make it an interesting vacation spot for retirees and second-home consumers.”
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Sedona has restricted actual property stock as a result of it’s surrounded on all sides by Nationwide Forest, and so, in the long run, native actual property costs are positive to rise resulting from provide and demand, mentioned Victoria Wylde of Re/Max Sedona.
“Because the pandemic, Sedona was placed on the map as a luxurious journey vacation spot and now we have been experiencing an inflow not solely of prosperous vacationers, but in addition prosperous dwelling consumers who’ve a want to personal a major or secondary dwelling right here,” Wylde mentioned. “
In response to Wylde, the present median recorded gross sales value for a luxurious dwelling in Sedona (outlined as houses over $1 million) is $1.4 million, with a median value per sq. foot of $589.
“Consumers will discover extremely distinctive neighborhoods and houses nestled amongst the purple rocks,” Wylde added. “Sedona is known for its Southwest fashion structure however there are innovative builders and designers right here that supply all kinds of kinds to go well with virtually anybody’s style.”
