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Report: 'Historic run of rent growth' in Southern Nevada is 'unlikely to continue'

Vegas Home Prices
Posted at 10:22 AM, Jul 12, 2022
and last updated 2022-07-12 22:59:19-04

LAS VEGAS (KTNV) — A new report from the Nevada State Apartment Association shows the "historic run of rent growth" in Southern Nevada "is unlikely to continue," real estate analysts say.

While a spokesperson acknowledged that "affordable housing is certainly an issue in Nevada," the latest data shows local rents are increasing about half as fast as they were one year ago, a press release states.

The new report was based on data provided by CoStar, a leading provider of commercial real estate information. It shows apartment rents in Southern Nevada growing by 11.2% through the second quarter of 2022, compared to a year earlier. During the same period, asking rents averaged $1,480 per month — up from $1,322 a year earlier.

Local apartment vacancy rates "remain solid," the report found. The average vacancy rate during the second quarter of 2022 was 6.7% — up 2.4% from the same time in 2021.

Analysts anticipate the addition of 7,400 rental units currently under construction will expand existing inventory by more than 4%, when they're complete. The bulk of those new rentals are being built in Henderson and Summerlin, NVSAA noted.

"Rents are expected to moderate this year as vacancy rates rise from the all-time low set in 2021," said NVSAA interim executive director Susy Vasquez. "Local rents are still lower than the national average apartment rent of about $1,640 per month during the second quarter."

Overall, "NVSAA sees signs that the local apartment market is starting to return to more normal and seasonal trends," analysts concluded.

Find our continuing coverage of the housing issues facing Southern Nevadans at ktnv.com/housing.