Thousands of people moving to Las Vegas causes rent increase

LAS VEGAS (KTNV) - Thousands of people are moving to Las Vegas each year which means they need somewhere to live. 

Realtor Tony Madaffari says this greatly impacts the real estate market.

Firstly, he says, houses priced correctly under $300,000 are selling very quickly.

"If houses are priced right, they're gonna sell," said Madaffari. "I have a couple of properties that the agents had never actually even physically looked at the property. They just sent me an offer."

Madaffari says this is because of how many people are moving to our city coupled with the more affordable housing compared to bigger cities.

"I get a lot of calls from people from California just looking for property."

One would assume all the buying, selling, and building going on would drive rent prices down. But Madaffari says it's the exact opposite.

"What's happening is because they're getting priced out, now they've gotta go to the rental market and there's more people flooding the rental markey and there's less of a supply and more of a demand that raises prices."

In other words, if people can't afford the down payment and all the other costs that come with buying a home, they are forced to look into renting. Madaffari says the rent increases are significant.

"It's not just going up $25 or $50. It's going up $100, $150, or $200 a month," said Madaffari.

Madaffari says he predicts this trend will continue for the forseeable future but he can't promise it will last forever.

His advice is if you're looking to move, use a realtor to get the best bang for your buck.

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