LAS VEGAS – Apartment rents continue to rise in the Las Vegas area, though at a slower rate than recent years as more apartments are being built. So says a report released this week by the Nevada State Apartment Association (NVSAA).
The report, issued by the NVSAA based on data provided by CoStar, shows the average asking rent for an apartment in the Las Vegas metro area at the end of 2019 was $1,080 per month. Average rents are up 4.5 percent from one year ago. That compares to an annual rent growth of 7.4 percent during the previous year.
“Thanks to our improving local economy and ongoing population growth, the demand for apartments remains strong in Southern Nevada. That increased demand has also sparked an increase in the number of apartments being built here,” NVSAA Executive Director Susy Vasquez said. “Over the past year, local apartment vacancy rates have been declining. Rents continue to increase and are about 15% higher than their pre-recession peak, but are now going up at a slower rate than past years.”
At the end of 2019, the apartment vacancy rate in the Las Vegas metro area was 6.5%. That’s down from nearly 11% during the depths of the Great Recession, the report found. One year ago, that vacancy rate was 6.2%. More than 12,000 new apartment units have hit the market since the beginning of 2015, with 2,173 of them delivered during the past year, the report found. Another 3,827 units are under construction in the Las Vegas metro area, with many of them concentrated along the 215 Beltway and near Henderson and the Summerlin and Enterprise areas.
For the first time in years, the report pointed out that new apartments are also being built in so-called infill areas closer to the Las Vegas Strip. The NVSAA report noted that the local apartment market continues to face competition from single-family homes being rented out by landlords, including institutional investors that own hundreds or even thousands of homes in Southern Nevada. This report is provided by the NVSAA based on data from CoStar, a leading provider of commercial real estate information.
About the NVSAA
The Nevada State Apartment Association is the voice of the multifamily housing industry in Nevada. The nonprofit organization provides a variety of services to its 894 community, property management and business partner members statewide, including legislative support, education and community outreach. NVSAA is committed to promoting and supporting the diversity, integrity and success of its members and their industry. For more information, visit www.NVSAA.org. ###