Rents in Nevada increase at more than twice the rate of inflation

pretty expensive really
(Nevada Current file photo)
pretty expensive really
(Nevada Current file photo)

Rents in Reno increased more than 19 percent in the last five years and rents in Clark County increased by 17.5 percent.

Both of those increases are more than twice the rate of inflation, which was 8.37 percent over the same period, according to the U.S. Bureau of Labor Statistics. 

A new report from Apartment List says 26 percent of renters in Las Vegas are severely cost-burdened, meaning they pay more than 50 percent of their income toward rent, while 27 percent are moderately burdened, meaning they spend more than 30 percent of income on rent. 

Severely cost-burdened households tend to sacrifice nutritious food and healthcare to pay housing costs. 

Data from the newly-released American Community Survey and compiled by Apartment List puts the price of a one-bedroom apartment in Southern Nevada at $957 in September of 2019, up 17.5 percent from $791 five years ago.  Median rent for a two-bedroom apartment was $1,186 last month, also up 17.5 from $980 in September 2014. 

Rent in Clark County for September 2019 increased 3.6 percent year-to-year, more than twice the rate of inflation, which was 1.7 percent during the same time period. 

In Reno, the cost of a one-bedroom apartment was $903 last month, up 19 percent from September 2014 when a one-bedroom apartment cost $729.  The price of a two-bedroom apartment in September was $1,175, up 19.5 percent from five years ago when the same apartment rented for $949.  Year-to-year, the rent for a one-bedroom apartment increased .6 percent from $897 to $903 in Reno and a two-bedroom apartment increased .6 percent from $1168 to $1175. 

“There’s a lot more inventory in the system, which is impacting rates and vacancies. We are seeing tiny hints of stabilization as units are absorbed but it is definitely an impact, anytime you see release of units into the market,” Suzy Vasquez, executive director of the Nevada State Apartment Association told the Current earlier this year.  Vasquez was unavailable for comment on this story.

Apartment List reports the share of cost-burdened renters nationally is on the rise, with about half of American renters struggling to afford housing. 

Roughly half of Nevadans are renters, according to the U.S. Census Bureau. About one in five (more than 90,000 households) have extremely-low-incomes, meaning they earn no more than 30 percent of the area median income of $64,800. 

Nevada has a shortage of 73,158 rental units for extremely low-income households, according to the National Low-Income Housing Coalition.

Dana Gentry
Reporter | 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 is the mother of four adult children, three cats, three dogs and a cockatoo.

3 COMMENTS

  1. So here is the other side of the story:

    Why don’t we do a look back from 2008 when the market rents were about equal to 2017 After 2008 rents dropped below market value after the economy tanked and the vacancy rate increased This makes 2014 or so, a low point on market rents. I would like to see what the 2008 median rents look like with inflation added for the past 10 years and I am certain that the current rents are below that figure.
    So now landlords are catching up, Its called supply and demand in a free market society.

    Example:

    Median rents in 2008 in Nevada were $1161/mo

    By 2014 the median price dropped to the low $900 figure

    I don’t have 2018’s number, but in 2017 the median price was $1079/mo.

    • Sorry Frank, it appears you are unaware of what supply and demand is.
      Apartments are in high supply, due to the pricing.. which is leading to low demand.
      AKA: In direct opposition to supply and demand.
      Supply and demand does not care what prices were 11 years ago. It does not care what prices were 11 minutes ago. It does not care about “catching up”.

  2. I am very much aware of what supply and demand is and it is certainly what dictates the price. Don’t know where you are seeing high supply with less than a 1% vacancy rate! Buildings are full. There is a housing shortage in Reno.

    I also know that supply and demand dose not care about what happened 11 years ago, but the article is comparing prices from the last five years and hence it is not an accurate depiction of what transpired hence making the article one sided. The prices back in 2010-14 were depressed because of high supply due to the poor economy and landlords reduced the rent and were barely keeping even with expenses. It most cases three were MOVE IN SPECIAL signs all of the place where the Landlords were giving the first months rent for free. So yes they are catching up!

    May I ask?
    How many business have your started?
    How many jobs have your created?
    How many payrolls have you made?

    I would guess none.

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