LAS VEGAS – A report released this week by the Nevada State Apartment Association (NVSAA) shows Southern Nevada’s apartment market starting to stabilize, with rents projected to rise more slowly this year than previously projected.
The report, issued by the NVSAA based on data provided by CoStar, shows Southern Nevada apartment rents growing by more than 20% through the end of the first quarter of 2022 compared to one year earlier. Asking rents during the first quarter averaged $1,451 per month, up from $1,198 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 $1,584 per month during the first quarter. We expect rents to continue increasing this year, but at a more gradual pace than during the past year.”
Vasquez noted that CoStar’s latest forecast expects local apartment rents to increase by about 5.5% by the end of 2022 compared to one year earlier. That’s a slower growth rate than the 7-8% annual increase that CoStar was previously projecting. It’s also more in line with pre-pandemic trends, she added.
Meanwhile, local apartment vacancy rates remain stable, with the average vacancy rate during the first quarter of 2022 at 5.4%. That’s up 0.3% from the same time in 2021.
As the pandemic wanes, NVSAA sees signs that the local apartment market is starting to return to more normal and seasonal trends. According to Vasquez, “a healthy market can be best described as low demand at the beginning of the year, ramping up a bit during tax season, slowing again until it throttles into high gear once school ends for the summer before slowing back down at the end of October through the holiday season.”
Local apartment construction is also on the rise, with the industry projected to catch up with demand by the end of 2022. The report showed more than 7,000 new local apartment units under construction through the first quarter, compared to about 3,800 units under construction during the same time last year.
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.