Does It Make Sense to Ditch Florida for Las Vegas?

By: Michele Lerner

While most new residents in Las Vegas hail from California and come in search of a friendlier financial environment, about 5% of new residents who arrived from out-of-state in 2022 came from Florida, according to data from Coldwell Banker Realty. While that’s well below the 38.3% that arrived from California, it’s slightly above the percentage of new residents from other states.

“Lots of people on the East Coast automatically think of Florida when they’re looking for a friendly business environment and no state income tax,” said Zar Zanganeh, a managing partner with The Agency in Las Vegas. “Some of them start to explore other places if they aren’t sure they want to stay in Florida and discover that Nevada offers the same financial benefits as Florida.” Many of the new Las Vegas residents from Florida are originally from New York, New Jersey and Connecticut, Mr. Zanganeh said. “The big benefit of Las Vegas compared to Florida and other places is that there are zero natural disasters here,” Mr. Zanganeh said. “No hurricanes, no earthquakes, no tornadoes, no landslides and no wildfires.” The lack of natural disasters definitely is a factor in people moving from Florida to Las Vegas, said Bob Hamrick, chairman and CEO of Coldwell Banker Premier Realty in Las Vegas. “One of our agents sold property from someone here who moved to Florida and then they moved right back after Hurricane Ian,” Mr. Hamrick said. Leaving One Sunshine State for Another Most buyers that Mr. Zanganeh works with in Las Vegas who are moving from Florida opt for hillside and country club locations outside of downtown Las Vegas. “There aren’t as many multimillion-dollar condos in Las Vegas as there are in places like Miami,” he said. “Our prices in the luxury market average around $1,000 per square foot, but some are well over $2,000 per square foot. Dollar for dollar, our prices are a little better than Florida, but usually luxury buyers are making a pretty equal trade.” Often these are buyers who moved from Manhattan to a house with a yard and a pool in Florida, so they want to replicate their Florida property in Las Vegas, Mr. Zanganeh said. While both states offer warm weather, there is a difference between the two locations that may be a factor in the popularity of Las Vegas. “A lot of people mention that they prefer the dry heat of Las Vegas in the summer compared to the humidity in Florida,” said Lisa Lopez, a real estate agent with Sotheby’s International Realty in Las Vegas, who has clients swapping the two locations in both directions. “Many of them prefer the dry weather for health reasons.” Mr. Zanganeh pointed out that Las Vegas has mild winters, an average of 10 days of rain and only about two months of intense heat. Financial Face-off Between Florida and Las Vegas Residents in both Florida and Nevada do not pay a state income tax and neither state has a corporate tax or franchise tax, said Mr. Zanganeh. Neither state has an estate or inheritance tax, either. “Once you live somewhere without any state income tax, you want to stay in a state without an income tax,” said John McClelland, vice president of research for Coldwell Banker Premier Realty in Las Vegas. “So, you might be willing to consider a lateral move from Florida to Nevada.” Nevada gets its revenue from property taxes, gaming and mining from gold and silver mines in the state, Mr. Hamrick said. Property taxes are relatively low in both Florida and Nevada. While property taxes vary by local jurisdiction, the average statewide property tax rate is 0.65% in Nevada and 0.89% in Florida, according to Bankrate. The overall effective income tax rate in the two states, which is based on average taxes on things like gas and food in addition to property, is also similar, according to an analysis by Wallethub. In Florida, the tax rate is 8.23% compared to 7.94% in Nevada. While high-net-worth households may not fret about the cost to insure their home and their cars, Ms. Lopez pointed out that Las Vegas has extremely expensive car insurance and registration fees compared to other states. “On the other hand, homeowner’s insurance rates are lower in Nevada than in Florida,” Ms. Lopez said. The average annual home insurance premium for a $500,000 house in Florida is $3,530, compared to $2,500 in Nevada, according to Insurance.com. But properties near the water in Florida typically have much higher insurance rates. The bottom line: Financially, Florida and Las Vegas offer similar benefits. Lifestyle Factors Drive Choice Between Florida and Las Vegas While Las Vegas obviously lacks the beach lifestyle Florida offers, it’s only about 30 minutes from Lake Mead for boating and 45 minutes from ski mountains, Mr. Zanganeh said. Las Vegas is known for its outdoor recreation options, including hiking. “For global business owners, Las Vegas is convenient because the airport is in the middle of the city and accessible within about 20 minutes from most locations in the valley,” Mr. Zanganeh said. The recent introduction of NFL and NHL sports teams,to Las Vegas is also attracting new residents, said Mr. Hamrick. “We see lots of filled stadiums, which is great for overall revenue and growth for the area,” he said. Gambling is the big draw in Las Vegas, of course, with casinos in the suburbs as well as along the Strip. “Las Vegas has a great food culture with chefs opening great restaurants all the time, too,” Ms. Lopez said. Ms. Lopez sees a generational split in the attractiveness of Las Vegas and Florida. “Many of my clients looking for communities restricted to residents aged 55 and older are moving from Florida to Las Vegas, but my younger clients are moving in the opposite direction,” said Ms. Lopez. “My older clients like the 24-hour lifestyle in Las Vegas because they get up early and they like to be able to go out to breakfast or the golf course at 4 or 5 a.m. The ones moving to Florida are attracted by the coastal lifestyle with beaches and nightlife.”