Skye Canyon vs Providence

ROI comparison for Las Vegas investors

MetricSkye CanyonProvidenceWinner
Average Home Price$475,000$545,000
Average Rent (3BR)$2,300$2,400
Gross Yield5.8%5.3%
HOA Fees$83/mo$145/mo
Cap Rate4.3%3.9%
Cash Flow (25% down)-$150/mo-$220/mo
5-Year Appreciation15-18%14-17%

Final Verdict: Skye Canyon wins 6 out of 7 key investment metrics

Why Skye Canyon Outperforms Providence for Investors

While both are quality master-planned communities in the Las Vegas valley, Skye Canyon offers superior investment economics across nearly every metric. The $70,000 lower average price point, combined with 45% lower HOA fees, creates meaningful advantages in cash flow and return metrics that compound significantly over a typical 5-10 year investment hold period.

Price Point Advantage: $70,000 Lower Entry Cost

At $475,000 average price versus Providence's $545,000, Skye Canyon requires $70,000 less capital per property. For investors placing 25% down, this means $17,500 less cash per property. This capital efficiency allows investors to either reduce their initial investment risk or acquire additional properties with the saved capital, improving portfolio diversification.

The lower price point doesn't reflect inferior quality—both communities feature homes from reputable national builders with similar construction standards. Instead, it reflects Providence's longer establishment and northeast location versus Skye Canyon's northwest positioning and newer development timeline. Smart investors recognize this pricing gap as an opportunity to acquire comparable quality at better value.

The $744 Annual HOA Advantage

Providence's $145 monthly HOA versus Skye Canyon's $83 represents a $744 annual difference—a 43% savings on association fees. Over a typical 5-year investment hold, this equals $3,720 in cumulative HOA savings. For a 10-year hold, savings reach $7,440. This isn't trivial money—it's enough to cover multiple tenant turnovers, serve as emergency reserves, or be reinvested for compounding returns.

More importantly, the lower HOA directly improves your net operating income (NOI) by $744 annually. On a $475,000 property, this represents approximately 0.16% improvement in cap rate compared to Providence. While seemingly small, this difference compounds: a 4.3% cap rate versus 3.9% means $1,900 more annual NOI, which over 10 years equals $19,000 in additional cash flow.

Detailed Metric Analysis

Rental Income Comparison

Providence achieves approximately $100/month higher rents ($2,400 vs $2,300 for 3-bedroom homes), translating to $1,200 additional annual gross income. However, after accounting for the $744 higher HOA expense, the actual advantage shrinks to just $456 annually—less than $40/month. When you factor in the $70,000 lower purchase price in Skye Canyon, the yield advantage becomes clear.

Cash Flow Comparison

At standard 25% down payment and 7.5% interest rates, Skye Canyon properties average -$150/month cash flow versus Providence's -$220/month. This $70 monthly difference ($840 annually) means Skye Canyon requires significantly less monthly capital contribution from your reserves. Over 5 years, this represents $4,200 less cash outlay, improving your cash-on-cash returns and reducing the financial strain of carrying a slightly negative cash flow property.

Appreciation Potential

Historical data shows Skye Canyon appreciating 15-18% over 5 years versus Providence's 14-17%. The slight edge to Skye Canyon likely reflects its newer construction stock and ongoing development momentum. Both communities benefit from master-planned community premiums, but Skye Canyon's position as a newer, actively developing community may support continued strength in appreciation as build-out progresses and amenities mature.

Location & Demographics Considerations

Geographic Positioning

Skye Canyon sits in northwest Las Vegas near the US-95 corridor, offering quick access to Downtown Summerlin, Red Rock Canyon, and Mt. Charleston. Providence occupies southwest Las Vegas with proximity to the I-15 corridor and Henderson employment centers. Both locations serve distinct tenant demographics—Skye Canyon attracts families valuing outdoor recreation and newer construction, while Providence appeals to professionals working in Henderson's tech and healthcare sectors.

Tenant Profile Differences

Both communities attract similar household income levels ($120K-140K range) and family-oriented tenants. Skye Canyon skews slightly younger (average age 35-40) with families in child-rearing years, while Providence's more established status attracts a broader age range. For investors, Skye Canyon's younger demographic often means longer lease terms as families settle in for school stability, reducing turnover costs and improving long-term cash flow.

The Investment Verdict

For the majority of investors, Skye Canyon presents superior investment economics compared to Providence. The combination of lower entry cost ($70K savings), lower operating expenses ($744/year HOA savings), better cash flow metrics ($70/month less negative), and comparable appreciation makes Skye Canyon the clear winner for return-focused investors.

Providence may appeal to investors specifically targeting the southwest Las Vegas market or those who have existing properties in Providence and want to concentrate their portfolio. However, for investors approaching these communities fresh and analyzing purely on investment merits, Skye Canyon's 6-out-of-7 metric advantage makes it the rational choice.

Final Recommendation

Choose Skye Canyon over Providence for:

  • • Better cap rates and cash-on-cash returns
  • • Lower capital requirements ($17,500 less down payment)
  • • Superior cash flow ($70/month better)
  • • Lower operating costs ($744/year HOA savings)
  • • Comparable appreciation potential
  • • Newer construction with lower maintenance

Ready to Invest in Skye Canyon?