Rental housing prices down 8.2 percent in Las Vegas

A drop in Las Vegas apartment rents may be sobering news for landlords and owners, but it comes at the right time for budget-conscious renters in the worst economic times since the Great Depression.

A December survey from Novato, Calif.-based RealFacts showed average rent of $768 a month in Las Vegas, an 8.2 percent decrease from $837 in the third quarter and a 12.5 percent drop from a year ago.

Of the 37 markets covered in RealFacts’ quarterly report, only Phoenix had a steeper quarterly decline — 8.7 percent to $695 a month. Other markets posting big declines were Salt Lake City (7.3 percent to $745); Denver (6.1 percent to $819); Vallejo-Fairfield, Calif. (5.7 percent to $1,092); Seattle (5.4 percent to $981); and Reno (4.9 percent to $776).

Nearly 70 percent of markets showed a decrease in fourth-quarter occupancy rates, which is a precursor to falling rents, RealFacts spokeswoman Sarah Bridge said. That’s in contrast to the previous two quarters, when occupancy was on the rise or holding steady.

RealFacts compared unemployment and vacancy rates and found that they’re nearly identical when tracked over a period of time. It’s safe to assume that changes in apartment vacancy will occur to the same degree as unemployment, Bridge said.

"There was an increase in employment in Las Vegas, and because that’s not happening, because of job losses, people are actually moving out," she said. "That market has always been a transient location. People come in because they think there’s an opportunity to make some money. They don’t settle in for life. They move somewhere else. It’s not an uncommon phenomenon. That’s pretty much what happened all over the country."

Las Vegas saw occupancy levels drop just 1 percentage point from the previous quarter to 90.1 percent. Boise, Idaho, saw a decrease of 2.8 percentage points to 89.9 percent; Fresno, Calif., was down 2.2 points to 91.7 percent; and Salt Lake City was 1.9 points to 91 percent.

Spencer Ballif, apartment specialist with CB Richard Ellis in Las Vegas, reported 11.06 percent vacancy in December, down from a high of 11.4 percent in September.

"It actually went down, which is surprising," he said. "Things are still going to decline. We had rents decline 14 percent for the year. I think rents will go down, but maybe 5 percent to 7 percent."

New construction is projected to shrink to 2,400 units this year, compared with 6,400 in 2009, Ballif said. Apartments compete with "shadow rental" homes on the market, single-family homes renting for $800 to $1,000 a month.

Privately owned condos listed for rent aren’t counted in market statistics. John Tippins of Valley Residential Services is listing two luxury high-rise condo rentals at Park Towers for $6,800 and $7,200 a month. He also has a large inventory of condos for lease on the Strip.

In addition to rent reductions, RealFacts found concessions offered at about 60 percent of properties surveyed. Common deals include one month of free rent for long-term leases and "look and lease" specials, or $200 to $500 savings for signing a lease on the first visit.

Las Vegas is one of several "code red" cities in which market conditions cause income-property "hemorrhage," Bridge said.

"In this instance, deep discounts in pricing aren’t functioning as the tourniquet to stop occupancy rates from falling," she said.

Rents appreciated by an unprecedented 6 percent a year during the building boom in Las Vegas, but all of those gains have been lost, Bridge said.

"Usually, you don’t see rising rents in Las Vegas like you saw," she said. "It seems that with the sinking of that (building) industry, that rents and occupancy have also gone down."

RealFacts reported on 106,680 apartment units in Las Vegas at 373 properties. Average rent ran from $506 for a 422-square-foot studio to $1,231 for a four-bedroom, 1,862-square-foot apartment.

Las Vegas-based Applied Analysis showed average rent of $770 in the fourth quarter, compared with $841 in the previous quarter and $881 a year ago.

Apartment rents are at a four-year low and property owners continue to adjust pricing to market realities, Applied Analysis principal Brian Gordon said. The accelerated downward trend follows a similar track in median resale home prices over the prior 24 months.

"Movements within the rental market tend to lag those in the for-sale market," Gordon said in his fourth-quarter market report. "Should historical relationships hold true to form, we would expect to see rental rates start to report flattening in three to five quarters."

A national apartment report from Marcus & Millichap Real Estate Investment Services moved Las Vegas up one place to No. 43 in a ranking of 44 markets based on supply and demand conditions.

Forecasts for weak job growth, rising vacancy and steep rent declines caused Las Vegas to remain near the bottom of this year’s rankings.

Asking rental rates are expected to drop 4.8 percent this year to $782 a month, while effective rents, which account for concessions, will drop 6.6 percent to $708 a month.

Following the loss of 57,000 jobs last year, local employers are forecast to add 2,500 positions in 2010, or a 0.3 percent gain to metrowide payrolls.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

ad-high_impact_4
Business
Happie Home Startup Establishing Headquarters In Las Vegas
Digital companion startup company Happie Home is establishing its headquarters in Las Vegas after receiving tax abatements from the Governor's Office of Economic Development on Nov. 15. (Bailey Schulz/Las Vegas Review-Journal)
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center
A Facebook-branded space inside of Macy’s at the Fashion Show shopping center will showcase 13 small businesses in November and December and seven in January. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
T-Mobile uses ticketing data to plan for event
T-Mobile Executive Director of Arena Operations explains how ticket sales data and demographics help plan staffing, vendors, parking and operations for an event.
Costco opens its doors in southwest Henderson
Costco has opened its fifth Las Vegas-area location near the intersection of St. Rose Parkway and Amigo Street. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas strip mall and office park
The Krausz Cos. and WG Group bought a strip mall and an office park in Las Vegas for nearly $80 million total. They acquired a portion of Tropicana Beltway Center in the southwest valley for $59 million. They also acquired the Westbay office complex in the Las Vegas Medical District. The buyers are former owners of The Gramercy, a once-mothballed mixed-use project in the Las Vegas suburbs. They sold The Gramercy in phases for more than $100 million.
Mario Barth talks about the growth of the tattoo industry
Celebrity tattoo artist and business owner Mario Barth talks about the growth of the tattoo industry at The World of Tattoo industry trade show at Planet Hollywood in Las Vegas
$7.5M Las Vegas pot dispensary opens near Las Vegas Strip
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. It has entertainment including an interactive floor and floating orbs. (K.M. Cannon/Las Vegas Review-Journal)
Caesars CEO to step down next year
Caesars Entertainment Corp. CEO Mark Frissora will leave the casino company in February. Frissora has been CEO since July 2015. He was named CEO right after Caesars' operating company filed for Chapter 11 bankruptcy protection Caesars Entertainment emerged from bankruptcy protection in October 2017 Before Caesars, Frissora spent seven years as chairman and CEO of Naples, Fla.,-based Hertz He led the consolidation of the rental-car industry through Hertz‘s acquisition of the Dollar Thrifty Automotive Group.
Planet 13 in Las Vegas adds twist to marijuana dispensary look
Planet 13, which bills itself as one of the largest dispensaries in the world, opened to the public Thursday. The dispensary is located near the intersection of Desert Inn Road and Sammy Davis Jr. Drive, near Trump International, in Las Vegas. Planet 13 has plans in the future for a coffee shop, a tasting room for marijuana-infused beer and wine, a lounge for consuming marijuana on site if that is legalized and space for food.
Caesars Entertainment opening 2 resorts in Dubai
Cove Beach will open on Meraas’ Bluewaters Island in Dubai in November and Caesars Palace Bluewaters Dubai and The Residences at Caesars Palace Bluewaters Dubai will open in December. (Caesars Entertainment)
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like