Spring Valley sees biggest rental rate decline in Las Vegas Valley since last year, report says

Rental rates in the Spring Valley neighborhood of Las Vegas saw the largest drop year over year of any area in the valley, according to new data from Zumper.

The average rental rate for a one-bedroom apartment in Spring Valley in the southwest valley at the end of May was $1,380, a 2.1 percent drop from May of last year, according to Zumper. But rent in Spring Valley was up 2.2 percent in May compared to April.

Crystal Chen, a spokesperson for Zumper, said the drop can be attributed to a number of new complexes coming online in Spring Valley, specifically.

“Our inventory data shows that the number of monthly active listings has increased by about 10 percent since 2023 (in that area),” she said. “This additional supply is likely helping to balance out demand, easing competition and placing downward pressure on prices.”

Rental rates for two bedrooms dropped even further in Spring Valley year over year (3.7 percent) to $1,550, and were flat in May compared to April.

A glut of apartment units have come onto the market in the valley recently, according to a new CoStar report. Approximately 4,600 multifamily units have been delivered over the past 12 months, putting the valley’s total inventory at 193,129, up from 180,165.

Units under contract hit a high water mark in 2022 (9,041) and net deliveries hit a high mark in 2023 (6,515).

Henderson is the most expensive place to rent in the valley, with rates for a one-bedroom up 1.3 percent year over year from May at $1,570, which is an increase of roughly $20, according to Jumper. Two-bedroom rental rates in Henderson are down 0.6 percent year over year to $1,770.

Chen said Henderson’s numbers show the valley’s rental rates are definitely not rising at levels they were a few years back.

“The fact that 1.3 percent marks the highest annual growth rate in the entire metro underscores how flat or even negative rent trends have been across the area,” she said. “That said, a modest seasonal uptick could be at play, as peak moving season typically brings more demand and competition to the market, putting slight upward pressure on prices.”

Countrywide outlook

Overall, the U.S. rental market appears to be softening as the median asking rent fell 1 percent year over year in May to $1,633, which is $72 below an August 2022 record high. A Redfin report noted that rental rates are now dropping in 28 major metros across the country, the most since 2023

Redfin Senior Economist Sheharyar Bokhari said this can also be explained by an influx of new apartments coming onto the market.

“Apartment construction in America has been hovering near a 50-year high, and even though renter demand is strong, it’s not keeping pace with supply,” he said. “Many units are sitting vacant for months, which means renters have power to negotiate concessions and landlords have less leeway to keep rents high.”

Year over year, according to Redfin data, Austin saw the biggest decline (8.8 percent) as rents in that city dropped to the lowest level since 2021, followed by Minneapolis (6.3 percent), Columbus, Ohio (3.5 percent), Nashville (3.4 percent) and Portland, Oregon (3.4 percent).

Rents have risen the most in Cincinnati, Ohio (7.4 percent) year over year to a record $1,460 in May, the biggest increase among the 44 top metro areas in the country. Next was Tampa (4.2 percent), followed by St. Louis (4 percent), Pittsburgh (3.5 percent) and Birmingham, Alabama (2.4 percent).

Aside from Cincinnati, three other major cities saw rents hit a record high which included Chicago (1.9 percent to $1,781), Memphis (1.9 percent to $1,274) and Washington, D.C. (2.4 percent to $2,104).

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.