LAS VEGAS – A report released this week by the Nevada State Apartment Association (NVSAA) shows Southern Nevada’s apartment market staying strong, with rising rents and lower vacancy rates, despite the economic challenges it has endured over the past year.
The report, issued by the NVSAA based on data provided by CoStar, shows local apartment rents growing by 9.3% through the end of the first quarter of 2021 compared to one year earlier. Asking rents during the first quarter averaged $1,198 per month, up from $1,138 during the fourth quarter and from $1,096 one year earlier.
“Rents continue to rise as demand continues to grow, especially from people moving here from out of state,” said NVSAA Executive Director Susy Vasquez. “Local rents are still lower than the national average apartment rent of $1,414 per month during the first quarter, which was up 2.9% from one year earlier.”
Meanwhile, local apartment vacancy rates decreased from last quarter, with the average vacancy rate during the first quarter of 2021 at 5.4%. That was down from 5.9% during the previous quarter, and down from 6.9% during the fourth quarter of 2020.
From 2015 to 2019, Southern Nevada apartment rents grew steadily. That changed when the pandemic hit Nevada last March, with rents declining initially before rebounding in recent months and now passing their pre-pandemic peak.
While Southern Nevada rents have increased in recent months, the report noted that “the percentage of properties offering concessions had declined over the prime summer leasing months in 2020 but have risen again in early 2021. Part of the increase can be attributed to the number of properties in lease-up, as several apartment communities delivered in late 2020 and early 2021. Newly completed properties are more likely to offer concessions as they compete to attract new renters. Many apartment properties delivered in the past year are offering concessions of a month’s free rent and several are offering in excess of a month’s free rent.”
Though apartment construction slowed during the ongoing pandemic, the report showed 3,826 local apartment units under construction during the first quarter.
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.