Rents are dropping in Henderson, up in Las Vegas: Zumper report
Rental rates are down in Henderson but up in Las Vegas, according to a new report.
Rent for a one-bedroom apartment in Henderson currently sits at $1,530 in April, a 1.3 percent drop from March and a 0.6 percent drop year over year, according to a new report from Zumper. In Las Vegas, rent for a one-bedroom apartment ($1,230) is up 2.5 percent from March and flat year over year.
Crystal Chen, the author of the report, said the discrepancy shows how metro regions’ rental rate can vary across specific areas.
“The differences in monthly rates between the two cities are relatively minor,” she said. “Despite an influx of new supply across the Las Vegas-area last year, rising rents suggest demand remains strong. Henderson is experiencing similar dynamics, though demand there may be slightly lagging behind new inventory. With continued population growth fueling housing needs in both cities, their rental markets are expected to stay competitive through 2025.”
Henderson currently has the highest rental rate for a one-bedroom apartment in the valley, followed by Spring Valley ($1,390), Winchester in central Las Vegas ($1,220), the city proper and then North Las Vegas ($1,040). Rent is down 11.1 percent in North Las Vegas compared to April of last year, and down 6.3 percent from March.
Renters are moving up
Henderson is home to some of the biggest new apartments in the country, according to a RentCafe report as the city ranks 10th in the nation when it comes to the average size of a newly built apartment, at 1,000 square feet, according to listing site RentCafe. Leading the country is Tallahassee, Florida (1,130 square feet); Gainesville, Florida (1,122); and Baton Rouge, Louisiana (1,055).
Nationally, Zumper has their National Rent Index down 0.5 percent monthly in median one-bedroom rent in April, settling at $1,517, while two-bedroom rent decreased 0.2 percent to $1,901, which is the third consecutive month of flat or declining prices.
A multifamily financing and building boom was kicked off across the nation during the pandemic when interest rates bottomed out, and Anthemos Georgiades, the chief executive officer for Zumper, said we are now seeing the effects of that market climate take shape in the form of new apartments.
“With so much new supply coming online over the past 12 months, we’re seeing renters able to move up market,” he said. “That movement frees up inventory at lower price points, creating a ripple effect of affordability. However, if demand holds steady while new construction continues to taper off, we could see rents pick back up in the second half of the year.”
Nevada needs to build more apartments to continue to meet a growing demand in the 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.
Also, valley renters are typically staying in their apartments for an average of just over two years also, according to a new study.
Compared to other Western U.S. cities such as Denver, Salt Lake City and Phoenix, Las Vegas stands out as having the highest competition per apartment unit, and the valley’s lease renewal rate grew significantly over the last year and ranks atop the region (which does not include California), according to the study from RentCafe, which is owned by Yardi.
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
