Nevada was one of the hardest-hit states during the foreclosure crisis in the late 2000s, and the housing market is still in recovery. But in 2013, home values headed up while foreclosure rates headed down, according to a report from the Lied Institute for Real Estate Studies at the University of Nevada Las Vegas. The state is also an attractive place for both residents and businesses because Nevada collects neither individual nor corporate income taxes. And for potential homebuyers, the Nevada Housing Division and the Nevada Rural Housing Authority offer homebuyer education classes, budgeting help and even financial assistance.
NerdWallet looked at the 34 Nevada communities with more than 5,000 residents to determine which are the best for homebuyers. Our analysis answers three main questions:
1. Are homes available? We looked at the area's homeownership rate to determine the availability of homes. A low homeownership rate is likely a signal of competitive inventory, more options for renters rather than buyers and expensive housing. Areas with a high homeownership rate led to a higher overall score.
2. Can you afford to live there? We looked at median household income, monthly homeowner costs and median home value to assess affordability and determine whether residents could live comfortably in the area. We used monthly homeowner costs to measure cost of living. Areas with high median incomes and low cost of living scored higher. Thinking of buying a home yourself? Check out our mortgage tool to find the best rate.
3. Is the area growing? We measured population growth to ensure that the area is attracting new residents and showing signs of solid growth. This is likely a signal of a robust local economy, which is another attractive characteristic for homebuyers.
For more details on our methodology, please see the "Methodology" section at the end of the report.
For more information on these and other places, check out NerdWallet Cities and NerdWallet's Cost of Living Calculator.
1. Silver Springs
Silver Springs has a population just under 6,000, according to the U.S. Census Bureau, but that small number is significantly increasing. In fact, this community tops our list for population growth because of its 18.8 percent population increase between 2010 and 2012. While the town boasts low median selected monthly homeowner costs of $1,176 and a low median home value of $114,300, its homeowners use a significant amount of their income - 42.3 percent - to pay homeowner costs. Steeped in history, Silver Springs features Fort Churchill and Pony Express trails, which were used to ferry mail across the country.
2. Spanish Springs
This community of more than 15,000 residents near the Pah Rah Mountains in western Nevada provides some gorgeous views, as well as opportunities for hiking and other mountain activities. Since homeowners in Spanish Springs use only 29.1 percent of their household income to pay homeowner costs, it's no surprise that 85 percent of homes here are owned rather than rented. The several colleges and universities in nearby Reno and Sparks, including the University of Nevada Reno, help maintain the area's educated workforce: 22.3 percent of residents have at least a bachelor's degree, which is slightly higher than the state average, according to the U.S. Census Bureau.
3. Spring Creek
Spring Creek's GreatSchools rating of 7 out of 10, which is based on standardized test scores, indicates that this rural community, located near Elko in the northeastern part of the state, is a great place to raise a family. The town's residents earn a median monthly household income of $7,575, the highest on our list, and homeowners pay only 20.2 percent of that toward homeowner costs, the lowest on our list. Spring Creek's location near the base of the Ruby Mountains also provides residents with plenty of opportunities for outdoor recreational activities, including camping, hiking at Ruby Dome and Griswold Lake, and fishing and canoeing at the 32-acre stocked private marina.
4. Moapa Valley
This small community of less than 7,000 is made up of the towns of Overton, Logandale and Moapa. Moapa Valley's population grew 7.3 percent between 2010 and 2012, and area homeowners spend 35.2 percent of their median monthly household income on homeowner costs. Residents have the opportunity to spend their spare time in vastly different environments: they can experience the great outdoors at Valley of Fire State Park and Lake Mead National Recreation Area, or they can explore the wilds of Las Vegas, which is just an hour's drive south.
5. Winnemucca
The "friendliest town in Nevada," as Winnemucca calls itself, is the county seat of Humboldt County, located in northwest Nevada on the Oregon border. Notably, the 6.8 percent unemployment rate in February 2014 for the county is one of the lowest in Nevada, according to the Nevada Department of Employment, Training and Rehabilitation. Winnemucca's major industries include cattle and sheep ranching, gold and silver mining, and agriculture. The median home value in Winnemucca is $173,900, and median selected monthly homeowner costs are $1,368. Homeowner costs take up only 24.3 percent of homeowners' household incomes, making Winnemucca an affordable place to live.
The rest of the Top 10 include - in order - Enterprise, Lemmon Valley, Summerlin South, Elko and Cold Springs.
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