LAS VEGAS (KTNV) — Mortgage defaults are climbing in specific areas of the Las Vegas Valley, continuing a troubling trend.
The highest number of troubled mortgages is currently coming from zip codes 89121 on the east side of town and 89108 near the historic west side, according to data analysis.
VIDEO: Abel Garcia talks to an expert who breaks down why mortgage defaults are on the rise
A mortgage default occurs when a homeowner stops making their mortgage payments.
Nearly a quarter of all mortgage defaults since January 2022 have occurred just in the first half of this year, according to Shawn McCoy, executive director of the Lied Center for Real Estate at UNLV.
Notices of default are also up 28% from last year. March set a record with 235 notices in a single month.
"When goods and services cost a lot of money, there's less money to help pay down that mortgage, and that can again put homeowners in a delicate situation to make their monthly mortgage payment. And on the labor market side, if there's potential softening in wages or softening in the ability to keep and retain a job. May put a homeowner on a veritable knife's edge," McCoy said.
There is some good news for renters concerned about housing costs. The average monthly cost for an apartment in Clark County has decreased about 4.2% since peaking in 2022.
The average rent across Southern Nevada is now $1,477, with the trend being driven by a wave of new apartments built over the past four years.
"In many ways, really good news for renters. Rents are coming down. Over the past four years, a lot of new supply has come onto the market. With that, vacancy rates are rising, and the average rent for units is dropping significantly," McCoy said.
Many landlords are now offering move-in specials and discounts, but McCoy warns falling rents could reverse if construction slows and interest rates stay high.
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