Holdings in non-residential real estate have given way to more residential investments among affluent Nevadans in recent decades.
Currently, close to 19 percent of households in the top 10 percent of income have holdings in non-residential property. This is down from nearly 28 percent in 1989. Over 42 percent report having residential holdings outside their primary residence, up from nearly 37 percent.
However, with the land market in Nevada becoming more balanced, vacant land investments may increase in the future.
“In recent years, vacant land investments in Nevada have often proved to have more value as tax mitigation strategies rather than investment strategies, and this will continue for some time for many who made investments during the boom era,” said Russell Price, executive vice president of The Private Bank, in a released statement. “With prices beginning to stabilize and even improve in some areas, some affluent households may be looking to diversify once again into the land market. Portfolio diversification remains a key hedge against risk in all asset classes, including real estate.”