Las Vegas Valley needs more apartments, association says
Nevada needs to build more apartments to continue to meet a growing demand in the Las Vegas Valley, according to the Nevada State Apartment Association’s latest report.
The state faces a multitude of challenges when it comes to offering affordable rental spaces, which is acutely felt in the valley due to its growing population, said Robin Crawford, executive director of the association, which represents more than 197,00 rental housing units in the state, or approximately 70 percent of all the multifamily inventory in Nevada.
“Historically, the state has faced a supply and demand imbalance with demand far outpacing supply which has imposed upward pressure on home affordability,” she said. “Factors like high interest rates, increasing costs of materials and labor shortages also remain a challenge to the costs associated with new construction projects. Additionally, bureaucratic hurdles in the construction process can lead to project cancellations, significant delays, and increased costs.”
Rental rates going up
Rent for a typical apartment in the valley increased from $1,425 in 2023 to $1,473 last year and then up to $1,490 in the first quarter of this year, a 4.6 percent jump since 2023. This is below the national average of $1,754, according to the association, however Las Vegas’ occupancy rate is slightly higher (88 percent) than the national average (87.5 percent).
The occupancy rate in the valley is actually down from the end of last year, according to the Nevada State Apartment Association. Currently, there are 7,901 multifamily units under construction in the valley, down from 8,126 at the end of last year.
“Factors like high interest rates, increasing costs of materials and labor shortages also remain a challenge to the costs associated with new construction projects,” she said.
Expanding workforce, population
The association’s report noted that continued demand for multifamily will also require more residential development to keep pace with the state’s expanding workforce and population. Clark County is adding approximately 115 residents a day to its population projections with about a third of those coming from California and the region is growing above the national average for large metro areas and is expected to break 3 million residents by 2042.
Crawford said the state needs targeted policy reforms to mitigate the upward pressure on living expenses in Nevada.
“These include making more land available for housing, streamlining regulatory and permitting processes, and cutting down on the red tape that currently hampers construction,” said the report. “As we continue to address these issues within the state, our industry is preparing for the impacts of tariffs and other proposed regulatory changes. Multifamily projects are largely continuing to move forward likely due to the difference in materials needed compared to single-family housing or commercial projects.”
In Reno, the average asking rent is now $1,658, a 4.5 percent increase from last year and the occupancy rate sits at 87.9 percent, up 0.5 percentage points from the end of 2024. Reno currently has 2,983 units under construction and the association’s report noted Nevada’s second biggest metro area is seeing the biggest growth in the North Valley and Central Reno area.
“Rents in Reno have ticked upward, continuing to signal a stable rental market. While its occupancy rate continues to trend a bit lower as new supply continues to enter the market, the absorption rate remains steady,” read the report.
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
