LAS VEGAS – A report released this week by the Nevada State Apartment Association (NVSAA) shows apartment rents in Southern Nevada beginning to decelerate and suggests “this historic run of rent growth is unlikely to continue.”
The report, issued by the NVSAA based on data provided by CoStar, shows Southern Nevada apartment rents growing by 11.2% through the end of the second quarter of 2022 compared to one year earlier. Asking rents during the second quarter averaged $1,480 per month, up from $1,322 one year earlier.
“Rents are expected to moderate this year as vacancy rises from the all-time low set in 2021,” said NVSAA Interim Executive Director Susy Vasquez. “Las Vegas continues to attract new residents with its affordable cost of living compared to other western markets, especially California. Local rents are still lower than the national average apartment rent of about $1,640 per month during the second quarter.”
Meanwhile, she said local apartment vacancy rates remain solid, with the average vacancy rate during the second quarter of 2022 at 6.7%. That’s up 2.4% from the same time in 2021.
As of the second quarter, about 7,400 local apartment units were under construction, which will expand existing apartment inventory by more than 4% once complete. The bulk of the new developments are in Henderson and Summerlin.
As Southern Nevada rebounds from recent economic challenges, NVSAA sees signs that the local apartment market is starting to return to more normal and seasonal trends. While affordable housing is certainly an issue in Nevada and nationwide, Vasquez noted that local rents are increasing about half as fast as they were one year ago.
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.