LAS VEGAS (FOX5) --More investors in valley are cashing in by turning homes into vacation rentals.
Nevada ranks fourth on the list of fastest growing vacation home markets in the country, according to a national report.
“This is just the second or third inning, this is a booming industry,” realtor Steve Hawks said.
Nevada has seen a 50 percent spike in vacation homes in the last decade.
“The majority of people do it professionally,” Hawks said. “There are 30-40% that have an extra home or are looking for an investment.”
Some of the hottest zip codes are in Henderson.
“Ever since Henderson legalized short term rentals, our phones have been blowing up,” Hawks said. “We’ve seen a 200-300% increase of professional Airbnb’ers who purchase these homes and just do this.”
“People are coming in, they have the luxury of legalized marijuana, they’re just 15 minutes from the Strip, the demand in Clark County is huge and the supply is real low,” Hawks added.
“If you have a family of four, it’s a lot easier to put them in a house than a hotel room, pay those extra fees,” investor Shawn Hansen said.
Hansen owns four rental homes across the valley.
“I’m looking in Henderson to buy some more right now,” he said.
Hansen added homes are still affordable here, compared to neighboring states like California, so investors can make their money back and turn a profit quickly.
“This Airbnb business is out of control right now,” he said. “It’s phenomenal. You can make $7,000 to $8,000 a week.”
While realtors like Hawk said Henderson could be the next rental capital of the West Coast, all that business will make it tougher for locals, who are already being squeezed out of the market.
“This is going to push out renters,” he said. “It’s going to increase rent. Rent is already sky-high, this is a reason why. And it’s going to push out home buyers, middle class home buyers because the homes that are good for short term rentals are also good for renters and first-time home buyers.”
The only states topping Nevada in the study were Montana, Mississippi and Idaho.