LAS VEGAS – A report released this week by the Nevada State Apartment Association (NVSAA) shows Southern Nevada’s apartment market is beginning to stabilize, after a summer of rising rents and very low vacancy rates.
The report, issued by the NVSAA based on data provided by CoStar, shows local apartment rents growing by more than 22% through the end of the third quarter of 2021 compared to one year earlier. Asking rents during the third quarter averaged $1,403 per month, up from $1,322 during the second quarter and from $1,148 one year earlier.
“Rents are stabilizing as we enter the time of year fewer people tend to move,” said NVSAA Executive Director Susy Vasquez. “Rents are expected to continue increasing, but not at the rate we’ve experienced this year. The growth rate of the past 12 months is just not sustainable for a healthy market.”
Meanwhile, local apartment vacancy rates continue to decrease, with the average vacancy rate during the third quarter of 2021 at 3.9%. That was down from 4.3%, during the previous quarter, and down from 5.4% during the same quarter in 2020.
Las Vegas continues its run as one of the nation’s fastest-growing apartment markets during the pandemic. Based on 2020 data, Clark County’s population grew by nearly 2% over the past year, or about 40,000 people. This growth occurred despite the pandemic and many business shutdowns. Unemployment rates remain high in Southern Nevada compared to the national average, but the report noted that a fully reopened economy has boosted job growth in the recovering leisure and hospitality sector.
Apartment construction slowed during the ongoing pandemic, but is now on the rise. The report showed more than 6,300 new local apartment units under construction during the third quarter, compared to about 3,800 units during the second quarter. Of this new development, the report found that more than 50% of these new apartment units are being built in the Summerlin and Spring Valley areas.
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.