Undercurrent

Apartment rents decrease slightly in Southern Nevada 

By: - October 13, 2022 1:59 pm

A total of 8,600 apartment units are under construction in Southern Nevada, mostly in Summerlin and Henderson. (Photo: Ronda Churchill)

The average rent for an apartment in Southern Nevada was $1,451 in the third quarter of 2022, down from $1,480 in the second quarter but up from a year ago, when the average rent was $1,403. 

Rents are up 2.5% for the first three quarters of 2022 over 2021. 

“Rents are expected to continue to decrease through the remainder of the year as vacancy rises from the all-time low we saw in 2021,” Nevada Apartment Association Executive Director Robin Lee said in a news release. “Las Vegas continues to attract new residents with its affordable cost of living compared to other western markets, especially California. Even with record-setting inflation, local rents are still lower than the national average apartment rent of about $1,630 per month during the third quarter.”

Average rent in Las Vegas eats up about 27% of median household income, up from 21% in 2019, according to data provided to the NVSAA by CoStar.  

“After 2021’s record-breaking rent growth, many renters would have difficulty stomaching another year of rent increases above 20%, particularly when CPI is above 8%,” says a report from market data firm CoStar. “The Baseline forecast calls for rent gains to continue to decelerate due to weaker apartment fundamentals.” 

Vacancy rates spiked to 7.5% in the third quarter of 2022, up from 3.6% a year ago, leaving more than 13,500 units vacant. 

“The end of eviction moratoriums has also added a significant number of available units that have been on the sidelines since the pandemic,” says the report from CoStar.

The vacancy rate is 6.8% for lower-priced “1 & 2 star” properties. No units in that category are under construction. The vacancy rate is 7.8% in the “4 & 5 star” category, which has 7,015 units under construction. A total of 8,600 units are under construction, mostly in Summerlin and Henderson.

While single-family homes will increasingly pose competition to apartments, according to the report, the $450,000 median price of a single family home “makes the monthly mortgage payment more costly than the average asking rent for 4 & 5 Star units, keeping many would-be homebuyers in the renter pool.”

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Dana Gentry
Dana Gentry

Dana Gentry is a native Las Vegan and award-winning investigative journalist. She is a graduate of Bishop Gorman High School and holds a Bachelor's degree in Communications from the University of Nevada, Las Vegas. Gentry began her career in broadcasting as an intern at Channel 8, KLAS-TV. She later became a reporter at Channel 8, working with Las Vegas TV news legends Bob Stoldal and the late Ned Day. Gentry left her reporting job in 1985 to focus on motherhood. She returned to TV news in 2001 to launch "Face to Face with Jon Ralston" and the weekly business programs In Business Las Vegas and Vegas Inc, which she co-anchored with Jeff Gillan. Dana has four adult children, two grandsons, three dogs, three cats and a cockatoo named Casper.

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