Las Vegas average apartment rents down 9.1 percent in quarter

Average apartment rent in Las Vegas dropped to $790 a month in the second quarter, compared with $796 in the first quarter, CB Richard Ellis reported Tuesday. Overall, rents are down 9.1 percent from a year ago.

Apartment vacancy decreased to 9.9 percent in June, the first time it's dipped below 10 percent since March 2009, the brokerage reported.

"Vacancies have been declining in our reports, which tells me the number of rental homes or the demand for rental homes is declining and more people are renting apartments," CB Richard Ellis apartment specialist Spence Ballif said. "However, rents are relatively flat."

Vacancy was lowest in Class A, or luxury apartments, at 7.05 percent for 36,130 units reporting. Class B vacancy was 9.84 percent for 46,043 units, while Class A vacancy was 13.41 percent for 29,832 units.

The southwest submarket had the highest average rent of $839 a month; the lowest rent of $668 was found in the northeast submarket. Five of six submarkets saw a quarterly decline in average rent, with Henderson-Green Valley being the lone exception.

Ballif said 82 percent of apartment properties surveyed were offering concessions, up from 74 percent in the first quarter. The amount of concession was relatively unchanged, he said.

The most common landlord concessions are move-in specials ranging from $99 to $499, depending on the number of bedrooms, and one month free rent.

Online apartment search site Rentjungle.com reported that average Las Vegas rent rose 4 percent during the second quarter to $995 a month, following a 3 percent increase in the first quarter.

"The Las Vegas market looks like it has turned the corner," Rentjungle Chief Executive Officer Jon Pastor said.

Nationwide, apartment rents increased 2.5 percent during the quarter. The largest gains were found in San Diego; San Jose, Calif.; Norfolk, Va.; Providence, R.I.; and Hartford and New Haven, Conn.

The rental market appears to have bottomed out in the fourth quarter, when rents dropped 3 percent from the prior quarter, Rentjungle reported. They were flat in the first quarter.

The website analyzes more than 1 million apartment advertisements to calculate rental rates. City-by-city apartment figures are available at rentjungle.com.

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