Rents continue to decline in Las Vegas Valley, report says

Rents in the Las Vegas Valley have either declined or stayed flat over the past four months, according to a new study.

One bedroom rental rates in the valley fell 0.9 percent in October to $1,150, while two-bedroom rents dropped 0.7 percent to $1,440, according to a new report from Zumper. Both bedroom types in the valley are down approximately 4 percent year over year.

Crystal Chen, an analyst with Zumper and one of the authors of the report, said this mirrors the overall U.S. housing market’s rental scene as rents have been flat or declining across the nation as a whole for the past four months as well. The one bedroom median rent in the U.S. sits at $1,511 while two bedroom rents sit at $1,888. Chen said expect more rent relief on the horizon as well.

“This marks the fourth consecutive month where rents in Las Vegas have been flat or falling,” she said. “As we move into the slower leasing season, we expect this cooling trend to continue in the near term.”

The Las Vegas Valley ranks as the 65th most expensive rental market in the nation in October and the price of one-bedrooms are down 4.2 percent since October of last year.

The report noted there are a number of factors currently contributing to the overall U.S. rental market, one of them being a glut of new apartments that has come online recently that were initially financed during the pandemic when interest rates bottomed out. Las Vegas has seen a massive wave of supply hit the market recently led by the southwest valley.

“While historic supply levels remain a major driver of the softening national rent prices, the rental market is also contending with headwinds from the broader economy,” the report stated. “Job growth has slowed, consumer sentiment remains depressed, and unemployment may be higher than official figures suggest. These macroeconomic factors are contributing to more conservative renter behavior, with many choosing to renew their current leases rather than move, keeping retention rates elevated. If weak consumer confidence and soft labor market conditions persist, they could delay the market’s eventual rebound.”

Zumper’s report said right now for the time being, renters clearly have the upper hand across the country and in Las Vegas.

“For renters, the current environment represents a rare opportunity to negotiate favorable lease terms and explore upgraded living situations,” the report states. “For property owners, navigating this supply-heavy landscape will require strategic pricing, creative concessions, and patience as the market works through this current high inventory state.”

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.