The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | April 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on the Housing Market in the Las Vegas-Henderson-Paradise, NV MSA | Page 1

Spotlight on the Housing Market 

in the Las Vegas-Henderson-Paradise, 

NV MSA

The Las Vegas-Henderson-Paradise, NV Metropolitan Statistical Area (Las Vegas MSA) is located at the southern tip of Nevada and contains 

the largest concentration of people in the state. Las Vegas was one of the hardest-hit areas during the housing crisis and is in many ways 

typical of how the crisis unfolded in the four so-called “sand states” of Arizona, California, Florida and Nevada. The MSA currently ranks 37th 

in the nation for the share of mortgages at risk of foreclosure- -those 90 or more days delinquent or in the foreclosure process. In the years 

leading up to the housing crisis, Las Vegas experienced rapid population growth, elevated levels of new home construction, and a rapid rise 

in home prices--home price appreciation in the Las Vegas MSA rose at a pace that was 28 percent higher than the national average. After 

the bubble burst, house prices in Las Vegas plummeted by 60 percent--nearly twice the national rate. The much lower property values and 

the resulting severely underwater mortgages were partially fueled by unsustainable mortgage lending and investor speculation going into the 

crisis. The rise in unemployment with the subsequent recession added further to rising defaults and the decline in property values. Similar 

to the nation, the share of distressed mortgages in Las Vegas began to rise rapidly in 2007 with the decline in house prices, but by its peak 

in early 2010, mortgage distress in Las Vegas far surpassed the national rate. The share of mortgages at risk of foreclosure has declined 

substantially in Las Vegas--the result of a relatively strong economic recovery, fairly substantial house price increases, and state legislation 

in 2009 and 2011 that sharply curtailed foreclosure activity. Nonetheless, relatively high shares of both distressed as well as underwater 

mortgages remain. The Administration’s broad approach to stabilizing the housing market has been a real help to homeowners in the Las 

Vegas metropolitan area. This addendum to the Obama Administration’s Housing Scorecard provides a summary of local economic trends and 

conditions and describes the impact of the Administration’s efforts to stabilize the housing market and help local homeowners. 

Population Growth, Employment, 

and Housing Market:

With nearly 2.0 million people according to the most 

recent Census, the Las Vegas MSA is the 30th largest in 

the nation. From 2000 to 2010, the population increased 

by an average of 57,550 people, or 4.2 percent a year. 

An influx of people accounted for 74 percent of the net 

population increase, as an average of nearly 42,800 

people per year moved to the Las Vegas MSA during the 

last decade. When economic growth was strong from 

mid-2000 through mid-2006, those relocating to the area 

reached an annual average of 55,000.

Las Vegas MSA Housing Unit Growth Outpaced Population 

and Household Growth During the Past Decade

Date of Census 4/1/2000 4/1/2010

Las Vegas MSA Population 1,375,765 1,951,269 

 Annual Growth Rate - 4.2%

Las Vegas MSA Households 512,253 715,365 

 Annual Growth Rate - 4.0%

Las Vegas MSA Housing Units 559,799 840,343 

 Annual Growth Rate - 5.0%

Source: Census Bureau (2000 and 2010 Decennial)

During the decade spanned by the Census, new housing 

production exceeded household growth in Las Vegas. Net annual 

housing unit growth of 5.0 percent during the last decade was greater than 

the corresponding population and household growth rates of 4.2 and 4.0 

percent, respectively, in the Las Vegas metro area. According to the Census 

Bureau, the number of vacant units in the MSA increased by an average of 

7,750 units, or 16.3 percent, annually, during the 2000s compared with 

a 4.4-percent national increase. This excess construction contributed to an 

oversupply of housing in the Las Vegas MSA and a sharp decline in home 

prices after the housing bubble burst. Investor speculation had a significant 

impact on the overbuilding in the years leading up to the housing crisis, as a 

relatively large share of home purchases in the MSA were by non-occupant 

investors. Specifically, from 2000 to 2005 investor home sales rose from 

10.4 to 30.5 percent of total sales in Las Vegas, while the corresponding 

increase for the nation was from 8.0 to 14.8 percent. Subprime lending 

also contributed to overbuilding in the Las Vegas MSA. A study by the 

National Bureau of Economic Research shows that in 2005, Las Vegas 

ranked 4th out of the top 107 metropolitan areas with the highest share of 

subprime mortgage originations relative to housing units. According to a 

Wall Street Journal article, First American Loan Performance data indicates 

that 17.8 percent of all mortgages were subprime in the Las Vegas MSA as 
The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | April 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on the Housing Market in the Las Vegas-Henderson-Paradise, NV MSA | Page 2

of December 2006, ranking 5th highest among large 

metropolitan areas. A conservative estimate based on 

HMDA (Home Mortgage Disclosure Act) data indicates 

that high-cost (proxy for subprime) originations tripled 

nationally between 1998 and 2005, while a study 

by the Center for Responsible Lending estimates that 

approximately 90 percent of subprime mortgages during 

that period faced increases in monthly payments of 30 to 

50 percent within a few years, causing subprime loans 

to typically default at more than 7 times the rate of other 

mortgages. Many subdivisions of new homes in Las Vegas 

were left only partially complete as builders lost their 

financing or went bankrupt. 

An economic recovery is underway in Las 

Vegas. The local economy experienced strong growth 

before a steep decline that began in 2008. From the 

second quarter of 2003 through the first quarter of 2008, 

nonfarm-payroll jobs increased at an average annual rate 

of 35,750, or 4.8 percent, compared with a national 

increase of 1.2 percent during the same period. The 

impact of the Great Recession was more severe for Las 

Vegas than for the nation. Jobs in the MSA declined at 

an average annual rate of 45,950, or 5.0 percent, from 

the second quarter of 2008 through the fourth quarter 

of 2010, compared with a national annual decline of 

2.0 percent over the same period. The recovery from the 

recession started later in Las Vegas, but jobs are now 

accelerating at an average annual rate of 18,450, or 2.3 

percent, from the first quarter of 2011 through the fourth 

quarter of 2013, compared with a national increase of 

1.7 percent. 

The Las Vegas MSA is known for tourism, particularly 

associated with gambling. However, during the recent 

recession, almost all private sectors in the MSA lost jobs. 

Job losses were largest in the construction and leisure/

hospitality sectors, where jobs declined at average annual 

rates of 19,350 and 6,700, respectively. Job losses were 

also substantial in the professional and business services 

(5,500), financial activities (2,850) and manufacturing 

(2,325) sectors. The recovery of the Las Vegas economy 

has been led by the leisure and hospitality, professional 

and business services, and retail trade sectors with 

respective average annual increases in jobs of 4,825, 

4,100 and 3,500. The unemployment rate for the Las 

Vegas MSA peaked at 14.3 percent in December 2010 

and has since fallen to 8.7 percent as of March 2014. The 

national unemployment rate peaked in October 2009 at 

10.0 percent, falling to 6.3 percent by April 2014. 

Home sales in Las Vegas are improving. After reaching a peak 

of 71,900 units sold in 2004, purchases of existing home in the Las Vegas 

metropolitan area dropped by an average annual rate of almost 21 percent 

between 2005 and 2007. Existing home sales bounced back sharply in 
The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | April 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on the Housing Market in the Las Vegas-Henderson-Paradise, NV MSA | Page 3

2008 and 2009 and have since maintained a level of 

approximately 50,000 units--increasing at an average 

annual rate of 12 percent from 2008 to 2013. By 

comparison, existing home sales in the nation peaked 

in 2005 and dropped by an average annual rate of 14 

percent between 2006 and 2008; existing home sales 

began to rise in 2009, increasing at an average annual 

rate of nearly 5 percent from 2009 to 2013. Purchases of 

new home in Las Vegas peaked in 2005 at 38,400 units, 

before falling from 2006 through 2011 by an average 

annual rate of 14 percent. New home sales have since 

stabilized at approximately 7,500 units, increasing over 

the last two years at an annual rate of 22 percent (albeit 

on a low base). Nationally, new home sales peaked 

in 2005 before declining by an average annual rate 

of almost 13 percent from 2006 to 2011; sales have 

increased since at an average annual rate of 20 percent 

(also on a low base). 

Home prices in Las Vegas rose and declined 

more steeply than for the nation during the 

housing crisis. The CoreLogic repeat-sales house 

price index (HPI) shows that home prices in the Las Vegas 

MSA peaked in the same month as the nation during the 

housing bubble, but rose 28 percentage points higher. 

The decline in home prices was also more pronounced 

in Las Vegas, with prices falling 60 percent from their 

peak in April 2006 to their low in December 2011. By 

comparison, the national peak-to-low (ending February 

2012) drop was 33 percent. Investor speculation had a 

significant impact on the rise in home prices in Las Vegas 

during the bubble. Sales to investors averaged 21 percent 

during the rapid rise in Las Vegas metro home prices--much 

higher than the 11 percent share nationally. As described 

earlier, subprime lending was also a factor in fueling home 

prices in Las Vegas. A relatively high level of distressed 

sales (involving bank-owned properties or short sales) 

played a large role in the price decline in Las Vegas, 

as distressed sales--at 51 percent of existing home sales 

during Las Vegas’ downturn--was more than double the 17 

percent rate during the national peak-to-low period. Since 

the end of the bubble, home prices have increased by 45 

percent in the Las Vegas metro area, nearly double the 23 

percent rise for the nation. Home values in the Las Vegas 

MSA are currently on par with prices there in the third 

quarter of 2003.

Although vacancy rates in Las Vegas have begun to decline, 

the apartment market remains somewhat soft. According to 

AXIOMetrics, Inc., the Las Vegas MSA apartment vacancy rate was 7.1 

percent in the first quarter of 2014, down from 8.7 percent a year earlier, 

representing soft market conditions. The decrease in the vacancy rate occurred 

because, despite increased construction, demand for rental housing was 

extremely high during the past year. The national apartment vacancy rate 

declined from 5.8 to 5.3 percent over the same period. During the fourth 

quarter of 2013, the average apartment rent in the Las Vegas MSA increased 

by 0.8 percent from a year earlier to $806; the average rent nationwide 

increased by 3.3 percent to $1,125 during the same period. Overall rental 

market conditions in the Las Vegas MSA remain weaker than the apartment 

market due to a high number of vacant single-family rental properties. 

According to the CPS/HVS (Current Population Survey/Housing Vacancy 

Survey) conducted by the Census Bureau, as of the fourth quarter of 2013 the 

overall rental vacancy rate for the Las Vegas MSA was 13.5 percent compared 

to a national rate of 8.2 percent. The 2012 ACS (American Community 

Survey) indicates that single-family homes accounted for 37 percent of all rental 

units in the Las Vegas metro area, while representing 29 percent of all rental 

units in the nation. 
The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | April 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on the Housing Market in the Las Vegas-Henderson-Paradise, NV MSA | Page 4

Trends in Mortgage Delinquencies 

and Foreclosures: 

Since the beginning of 2010, the rate of 

mortgages at risk of foreclosure has declined 

substantially in Las Vegas. According to Black 

Knight Financial Service, Inc., as of February 2014 the Las 

Vegas MSA placed 37th out of 381 metropolitan areas 

ranked by share of mortgages at risk of foreclosure (90 

or more days delinquent or in the foreclosure process). 

During the last year, mortgages at risk of foreclosure in 

Las Vegas decreased by 48 percent—from 32,650 to 

16,900--compared with a national decline of 35 percent 

over the same period. A partial explanation for the 

higher decline in the share of distressed mortgages in 

Las Vegas relative to the nation is a shorter foreclosure 

processing timeline. As of the first quarter of 2014, the 

average time to complete a foreclosure in Nevada was 

386 days, somewhat less than the national average of 

572 days. The rate of mortgages at risk of foreclosure in 

the Las Vegas MSA was slightly above the national rate 

from 2000 through mid-2004, and slightly below the 

national rate from mid-2004 through 2006, according 

to CoreLogic data. However, in 2007 and 2008 when 

the foreclosure crisis began and single-family foreclosures 

were largely driven by unaffordable non-traditional loan 

products, the increase in mortgages at risk of foreclosure 

in Las Vegas far exceeded the national trend. From the 

beginning of 2007 to the end of 2008, the share of 

distressed mortgages in Las Vegas rose from 1.6 to 9.3 

percent, compared to a national increase of 1.6 percent 

to 4.5 percent. Beginning in 2009, foreclosures were 

increasingly driven by loss of income, unemployment, and 

strategic defaults as the economy worsened, according to 

research by the Federal Reserve Bank of Chicago. A sharp 

spike upward in the rate of distressed mortgages occurred 

in 2009 for both Las Vegas and the nation, although the 

spike was much more severe in Las Vegas--the share of distressed mortgages 

rose to 19.8 percent by early 2010 compared to 8.0 percent nationally. As 

of January 2014, the share of distressed mortgages has fallen to 7.6 percent 

in Las Vegas compared to 4.5 percent nationally. 

Realty Trac data show the rate of foreclosure completions 

in the Las Vegas MSA has been well above the national 

rate. From April 2009 through March 2014, the number of foreclosure 

completions as a percent of all housing units in the Las Vegas MSA was 

more than four times higher than the national rate--12.5 percent in Las 

Vegas versus 2.9 percent in the nation. Foreclosure completions have 

been trending downward nationally as well as in Las Vegas. For the first 

quarter of 2014, the rate of foreclosure completions in Las Vegas was 0.15 

percent, 32 percent lower than a year earlier, but still more than double 

the national rate of 0.07 percent. Foreclosures in the nation declined 36 

percent during the same period. 

The efforts of numerous state and local entities and financial institutions in 

partnership with the federal government have helped contain the rate of 

foreclosures. State legislation also has had a significant impact on foreclosure 

activity in Nevada. The Nevada Foreclosure Mediation Program, which was 

created with the passage of State Assembly Bill 149 in 2009, has helped 

more than 4,725 homeowners retain their homes by finding alternatives to 

foreclosure through mediation. State Assembly Bill 284, which made it a 

felony for a lender to foreclose on a property without first providing legally 

notarized proof that it holds the mortgage, has also contributed to a decline 

in foreclosure activity since it was implemented in October 2011. The 

need for recovery efforts continues. CoreLogic reports that 32.6 percent of 

mortgages in the Las Vegas MSA were underwater as of the fourth quarter of 

2013, down from 55.0 percent a year earlier, but still more than double the 

national average of 13.3 percent. 

Foreclosure Completion Rates in the Las Vegas MSA

Area

First Quarter 2014 Since April 1, 2009

Foreclosure 

Completions

Foreclosure 

Rate

Foreclosure

Completions

Foreclosure 

Rate

Las Vegas 1,230 0.15% 104,850 12.5%

Nation 89,400 0.07% 3,784,300 2.9%

Note: Foreclosure Rates as Percent of All Housing Units; 

 Data through March 2014 for foreclosures since April 2009

Source: Realty Trac and Census Bureau
The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | April 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on the Housing Market in the Las Vegas-Henderson-Paradise, NV MSA | Page 5

The Administration’s Efforts to 

Stabilize the Las Vegas MSA 

Housing Market

The Administration’s mortgage and neighborhood 

assistance programs--the Home Affordable Modification 

Program (HAMP), the Federal Housing Administration 

(FHA) mortgage assistance programs, the Neighborhood 

Stabilization Program (NSP), and the Hardest Hit Fund 

(HHF) program–combined with assistance from the HOPE 

Now Alliance of mortgage servicers and the National 

Mortgage Servicing Settlement have helped stabilize the 

Las Vegas MSA housing market.

From the launch of the Administration’s assistance 

programs in April 2009 through the end of March 2014, 

over 82,100 homeowners have received mortgage 

assistance in the Las Vegas metropolitan area. Nearly 

43,300 interventions were completed through the 

HAMP and FHA loss mitigation and early delinquency 

intervention programs. An estimated additional 38,800 

proprietary mortgage modifications have been made 

through HOPE Now Alliance servicers. While some 

homeowners may have received help from more than 

one program, the number of times assistance has 

been provided in the Las Vegas metropolitan area is 

78 percent of the number of foreclosures completed 

during this period (104,850). The relatively low ratio of 

mortgage assistance to foreclosures in Las Vegas since 

April 2009 (0.78 to 1 compared to 2 to 1 for the nation) 

is likely related to the persistently high unemployment 

rates in Las Vegas during this time, making it harder to 

effect mortgage assistance. 

Under the landmark National Mortgage Servicing 

Settlement in February 2012, more than 20,413 Nevada 

homeowners have benefitted from over $1.9 billion 

in refinancing, short sales and completed or trial loan 

modifications, including principal reduction on first and 

second lien mortgages provided as of June 30, 2013. 

Nationwide, the settlement has provided more than 

$50 billion in consumer relief benefits to more than 

631,000 families. That is in addition to the $2.5 billion 

in payments to participating states and $1.5 billion in 

direct payments to borrowers who were foreclosed upon 

between 2008 and 2011. 

Given over three rounds, the Neighborhood Stabilization Program

has invested $7 billion nationwide to help localities work with non-profits and 

community development corporations to turn tens of thousands of abandoned 

and foreclosed homes that lower property values into homeownership 

opportunities and the affordable rental housing that communities need. 

NSP1 funds were granted to all states and selected local governments on 

a formula basis under Division B, Title III of the Housing and Economic 

Recovery Act (HERA) of 2008; NSP2 funds authorized under the American 

Recovery and Reinvestment Act (the Recovery Act) of 2009 provided grants 

to states, local governments, nonprofits and a consortium of nonprofit entities 

on a competitive basis; and NSP3 funds authorized under the Dodd–

Frank Wall Street Reform and Consumer Protection Act of 2010 provided 

neighborhood stabilization grants to all states and select governments on a 

formula basis.

In addition to stabilizing neighborhoods and providing affordable housing, 

NSP funds have helped save jobs. Each home purchased, rehabilitated and 

sold through the NSP program is the result of the efforts of 35 to 50 local 

employees. 

Overall, a total of $174 million has been awarded to the State of Nevada 

through NSP1 and NSP3. Of this, $154 million has been awarded to the 

Las Vegas MSA. Over 520 households in the Las Vegas MSA have already 

benefited from NSP, and activities funded by the program are expected to 

provide assistance to an additional 30 to 50 owner-occupied and renter 

households. 

Most NSP activities in the Las Vegas metropolitan area have involved 

acquisition of eligible single-family homes in targeted areas which were 

foreclosed upon or abandoned; rehabilitation of those homes; and either 

reselling or renting them to eligible homebuyers with incomes at or below 
The Obama Administration’s Efforts to Stabilize the Housing Market and Help American Homeowners | April 2014 U.S. Department of Housing and Urban Development | Office of Policy Development and Research

U.S Department of Housing and Urban Development

U.S. Department of the Treasury

Spotlight on the Housing Market in the Las Vegas-Henderson-Paradise, NV MSA | Page 6

120 percent of the area median income. Exceptions 

to this general formula were the development of two 

small multifamily projects with NSP1 funds and a large 

demolition of blighted units and land banking of property 

with NSP3 funds. In addition, the grantees generated a 

total of $24 million in program income from the sale of 

rehabilitated homes which has been used to expand the 

NSP programs. Examples of how NSP funds have been 

put to use in the Las Vegas MSA are provided below.

• The City of Las Vegas received nearly $14.8 million 

under NSP1 and $10.5 million under NSP3. The City has 

been managing the NSP programs since 2009, donating 

all office space and supplies needed for the program. The 

program has proven to be both successful and sustainable. 

The original NSP1 and NSP3 awards allowed the city to 

purchase and rehabilitate 185 foreclosed single-family 

homes. The proceeds from the sale of those homes have 

been used to purchase more abandoned homes to further 

progress in returning Las Vegas neighborhoods to the 

healthy communities they once were. Program income 

from this initiative has allowed an additional 39 homes 

to be rehabilitated for a total of 224 homes. The recycled 

income is projected to continue through 2015, with a 

closeout early in 2016. 

One of the most notable projects funded by the State 

of Nevada and Clark County with NSP3 funds is 

improvement of the Rulon Earl area in the City of Las 

Vegas. Rulon Earl was created in 1979 as a mobile 

home park for seniors and is owned and operated by 

the Southern Nevada Regional Housing Authority. By 

the mid-2000s, Rulon Earl had become blighted and 

presented many safety concerns for its residents. The State 

of Nevada and Clark County leveraged a total of $2.6 

million in NSP3 funds to build 80 new single-family units dedicated to serving 

disabled seniors with incomes at or below 50 percent of the area median 

income. Thirty-six percent of these units are already occupied. The Rulon Earl 

project has increased the security and livability of this area.

• Through an inter-local-government agreement, Clark County became the 

grantee for the City of North Las Vegas. The County received nearly 

$29.7 million in NSP1 funds and $20.3 million in NSP3 funds. A portion 

of the NSP3 funds was used to demolish 288 abandoned and blighted units 

and to land bank the property, known as Buena Vista Springs. HUD has been 

providing technical assistance to the City of North Las Vegas in establishing a 

redevelopment project for the land bank.

• The City of Henderson received $3.2 million in NSP1 funds and $3.9 

million in NSP3 funds and has produced a total of $1.8 million in program 

income. A portion of these funds has been used to house 22 youths in a 

multifamily project operated by St. Jude’s Ranch.

The Administration allocated $194 million from its Hardest Hit Fund to the 

state of Nevada. The Nevada Affordable Housing Assistance Corporation 

(NAHAC) administers the Nevada Hardest Hit Fund (NV HHF), which was 

launched in December 2010. As of March 31, 2014, NV HHF had assisted 

an estimated 5,188 Nevada homeowners with approximately $82.0 million, 

or about 42% of their total program allocation. The Nevada Hardest Hit 

Fund is actively helping homeowners at high risk of default or foreclosure 

through its Mortgage Assistance Program, which provides mortgage payment 

assistance for unemployed and underemployed homeowners who contribute 

to their payment. NAHAC is currently considering additional program options 

to expand assistance to underserved homeowners and to address ongoing 

negative equity concerns. For additional information, please visit 

http://nevadahardesthitfund.nv.gov/.

Las Vegas MSA NSP Activity (Housing Units) Originally

Projected Completed

NSP1 349 433

Construction of new housing 29 29

Rehabilitation/reconstruction of residential structures 189 271

Demolition or Clearance 4 0

Homeownership assistance to low-and moderate income 127 133

NSP3 134 130

Construction of new housing 0 10

Rehabilitation/reconstruction of residential structures 89 87

Homeownership assistance to low-and moderate income 45 33