Prices for houses in Las Vegas and Arizona have skyrocketed within the last month due to the volatile nature of the housing market in those states.
Bloomberg reports that while the rest of the country’s houses are gaining value at a steady pace, bubbles are inflating in Las Vegas and Arizona. The vice president of a data firm said that this inflation only took place in the desert states because they are warm vacation spots.
Private-equity firms, hedge funds and real estate investment trusts are the ones cashing in on this real estate boom. These groups have been consistently buying and selling houses at a higher value after the mid-2006 real estate bust, racking up at least $18 billion since 2011.
The 2006 bust cut the prices of Las Vegas and Arizona homes by 62% and 56% respectively.