LAS VEGAS – A report released this week by the Nevada State Apartment Association (NVSAA) shows Southern Nevada’s apartment market is staying hot, with rising rents and very low vacancy rates, despite the economic challenges the area has endured during the pandemic.
The report, issued by the NVSAA based on data provided by CoStar, shows local apartment rents growing by 18% through the end of the second quarter of 2021 compared to one year earlier. Asking rents during the second quarter averaged $1,322 per month, up from $1,198 during the first quarter and from $1,121 one year earlier.
“Rent increases have doubled since last quarter and will continue to rise as demand continues to grow, especially from people moving here from out of state,” said NVSAA Executive Director Susy Vasquez. “Las Vegas is one of those markets where rents will likely grow the most in 2021. At the same time, local rents are still lower than the national average apartment rent of $1,482 per month during the second quarter, which was up 7.6% from one year earlier.”
Despite the economic effects of COVID-19, Las Vegas continued its run as one of the nation’s fastest-growing markets during the pandemic. Based on 2020 data, Clark County’s population grew by nearly 2% over the past year, or 40,000 people. That makes it one of the nation’s 10 fastest-growing metro areas with at least 750,000 residents.
Meanwhile, local apartment vacancy rates continue to decrease, with the average vacancy rate during the second quarter of 2021 at 4.3%. That was down from 5.4% during the previous quarter, and down from 6.1% during the same quarter in 2020.
While overall asking rents continuing to climb, the Las Vegas Strip submarket rent growth has slowed substantially over the past year. This submarket has some of the most affordable rents in Las Vegas, averaging around $930 per month.
“This area has long attracted renters who work on the Strip and are looking for affordability and proximity to work,” Vasquez said. “Given the current conditions in the leisure and hospitality sectors, landlords in these areas are holding down rent increases.”
Though apartment construction slowed during the ongoing pandemic, the report showed 3,826 local apartment units under construction during the second quarter. The report noted that infill projects in the Downtown Las Vegas area have seen an increase, with more than 300 units under construction.
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.