Rental rates rising sharply in Las Vegas Valley

It didn’t take Sarah Shugars long to realize a change in the Las Vegas rental market in the three years she left for Los Angeles.

Shugars, 31, and her fiance returned to Las Vegas three months ago from Portland, Ore., and found rents have risen dramatically in both apartments and homes, and that even finding a rental home proved to be a challenge. When she left Las Vegas, Shugars moved out of a one-bedroom unit in the southwest valley for $800 a month. When she returned the couple found that two-bedroom apartments they liked rented for $1,500.

“They were apartment complexes, not even houses that were charging similar to what we were paying in California for a one bedroom,” Shugars said. “It’s different than it was before. It’s on fire. It’s crazy.”

For renters in Las Vegas, that stats bear out what they’ve seeing.

Research firm Applied Analysis reported this week that Las Vegas rents averaged $850 a month during the third quarter, up 7.2 percent over the past year. That’s the 12th consecutive quarterly increase in rents and up from a market low of $743 a month in the middle of 2011.

That echoes similar findings from the Lied Institute for Real Estate Studies in its third-quarter apartment report. It reported rents are up 12.1 percent over the last year to $850 a month, just $27 or 3 percent below the peak in 2007. The vacancy rate fell 1.3 percentage points in the past year and is at its level since 2007 at 7.9 percent, according to Lied.

“The Las Vegas economy is getting healthier and employment is down and wages and income are rising, albeit kind of slowly, but they’re rising,” said Lied Institute Director Edward Coulson. “The demand for housing is going up. Property values are going up the last couple of years and that’s a cause and consequence of rents going up. It’s been a pretty steady upward trend for the last couple of years.”

Based on the trend over the last three years, apartment rents, within the next year could reach their Las Vegas high of $890 a month set during the third quarter of 2008, said Brian Gordon, a principal at Applied Analysis.

MORE RESIDENTS

Gordon noted an increase in demand with the addition of 40,000 residents during the last year and an improved economy that changes people’s decision-making when it comes to housing. That’s reflected in marketwide occupancy rates that stood at 93.8 percent in the third quarter, a half a percentage point gain over the past year.

“Those who have doubled up during the economic downturn either with family or friends may find themselves in a more financially secure position that allows them to spread their wings on their own housing options,” Gordon said.

The scenario is playing out in the apartment rental market, which is on a similar course in the home rental market. There was nearly 8,200 homes under lease in the third quarter, said Peter Counts, a data analyst with Lied.

Ashley Hawks, a broker with Black & Cherry, which manages 800 residential properties in Southern Nevada, said it’s a change from three years ago when hedge funds bought up distressed homed and flooded the market with rentals, depressing prices.

A low inventory of homes that makes purchasing more difficult increases rental values, Hawks said. There’s still plenty of homeowners who’ve lost homes to foreclosures and short sales who want to live in a home rather than rent an apartment, she said.

“A lot of apartment complexes have even higher rates so why rent a two-bedroom apartment for $1,200 a month when you can be in single-family home in Henderson for $1,200 to $1,300 a month,” Hawks said.

The increase in home rents started about 18 months ago, Hawks said. A three-bedroom home in Seven Hills that rented for $900 to $1,000 in 2011 was $1,300 some 18 months ago. That same home rents for $1,500 today, almost where it was prior to the Great Recession, she said. Seven Hills, Summerlin, Green Valley, and Anthem are among the subdivisions that are the most sought after, she said.

“I don’t see the inventory changing in the near future so I expect continued increases,” Hawks said.

HOME, AT LAST

As for Shugars, who’s had a career as a transactions coordinator in the real estate industry, she said she and her fiance had trouble finding a home to rent. Every time they found a home they liked, seven to 10 other people were interested in it as well. The best chance to get a place was to apply the day it become available, she said.

Shugars said she and her fiance are planning their wedding and aren’t ready to buy just yet.

The couple found a 1,600 square-foot townhome with an attached garage in a Henderson gated community that rented for $1,200 a month. It’s not quite what they were looking for but they signed a one-year lease and will consider their options in 2016.

“When we were here previously, there wasn’t such a boom,” Shugars said. “When we moved back, there was a lot more competition and the rents have gone up. The rents were insane in California and Los Angeles crazy, and I feel like Nevada is going that way as well. … I’m glad we found a place to settle down with.”

Developers have responded to the apartment demand by planning new projects and several are expected to be online in the next 12 to 24 months, Gordon said. These are higher end, higher priced units are planned for the southwest, Henderson and northwest valley. More than 3,000 units alone are planned for the southwest valley, according to Applied Analysis.

Apartment rents rose the most in the northern part of the valley at 11.3 percent over the past year to $869 a month. Its occupancy rate rose nearly 3 percentage points over the past year to 95 percent.

The southwest valley had an 8.4 percent increase to $1,024 a month, the highest in the valley, according to Applied Analysis. The northeast, where occupancy was the lowest in the valley at 89.3 percent, had the lowest rents at $689 a month.

ad-high_impact_4
Business
Holiday Parade Lights Up Downtown Summerlin
Holiday parade lights up Downtown Summerlin every Friday and Saturday night through Dec. 22.
Nevada's solar industry on the rebound
In 2015, the Nevada Public Utilities Commission voted in favor of a new tariff structure that reduced net energy metering buyback rates and increased fix fees for residential solar customers.
Apartment complexes selling fast in Las Vegas
Las Vegas’ apartment vacancy rate is among the smallest in the country, and rents are climbing faster than the national average. (LVRJ)
Aristocrat Opens $45M Campus In Summerlin
Aristocrat Technologies Chairman Ian Blackburne discusses the company's growth. (LVRJ)
Sunrise Hospital celebrates 60 years
Sunrise Hospital opened its doors to patients on Dec. 15, 1958. Employees of more than 35 years celebrated at a luncheon Wednesday, Dec. 12, 2018. Jessie Bekker/ Las Vegas Review-Journal.
Maya Cinemas to open soon in North Las Vegas
Moctesuma Esparza, CEO of Maya Cinemas, talks about the newest location in North Las Vegas, set to open Jan. 10. The aim of the theatre chain is to serve latino-centric, underserved communities.
Holiday shopping and returns make this the busiest time of year for UPS
The UPS Las Vegas South facility is the company's busiest pre-load operation in the country, and it's even busier this time of year. (K.M. Cannon/Las Vegas Review-Journal)
Primm’s outlet mall has fallen on hard times
The mall, attached to Primm Valley Resort, opened in 1998. Back then, it was a “textbook, perfect outlet-center location." But now, Primm’s outlet mall has fallen on hard times. Las Vegas Boulevard has endless shopping spots. And there are other outlet malls that don’t require a hefty drive to the state line. Its mortgage-holder foreclosed on the mall in late September.
Miltary auction at Ritchie Bros. Auctioneers
Humvees, ammo cans, construction equipment, field gear and more is on the auction block Friday and Saturday at Ritchie Bros. Auctioneers. About 10,000 items in all are for sale in what GovPlanet bills as the largest auction of its kind.
Las Vegas residents discuss avoiding holiday scams
Las Vegas residents discuss their donation habits and how they avoid giving money to scam charities during the holiday season. (Bailey Schulz/Las Vegas Review-Journal)
Tesla’s Nevada Gigafactory ahead of economic impact expectations
The Tesla Gigafactory’s economic impact on Nevada has exceeded projections, bringing in more than 7,000 jobs. In 2014, Nevada agreed to give the automotive and energy company $1.3 billion in tax abatements. In return, Tesla promised to meet certain requirements in areas like employment and capital investment. As of June, Tesla has brought in a total of $6.05 billion in capital investment, surpassing the $4.95 billion projection. The original contract gave the company until 2024 to make $3.5 billion in capital investments in Nevada. Derek Armstrong, deputy director of the Governor’s Office of Economic Development.
Land sales near the Las Vegas Raiders stadium
Land around the Las Vegas stadium site has been selling for high prices. A few months before the stadium’s groundbreaking, Global Trust Group acquired a 2.5-acre parcel just north of the stadium site. The property sold for $7.25 million, or $2.9 million an acre. Osprey Real Estate Capital and Huntington Hotel Group acquired a 2-acre industrial site just west of the stadium site in late November. The property sold for $6.5 million, or $3.15 million per acre. That's roughly 12 times the average price of land in the valley this year as tracked by Colliers International.
T-Mobile Tech Experience Truck parks in Toshiba Plaza at T-Mobile Arena
The Tech Experience Truck is a state-of-the-art showroom on wheels, with demonstrations that put connected drones, smart cities, augmented/virtual reality and smart tracking. The exhibit shows new wireless technology – including 5G and the Internet of Things (IoT). (K.M. Cannon/Las Vegas Review-Journal)
Steve Siegel, CEO of the Siegel Group, speaks about helping families and other needy residents
Steve Siegel, CEO of the Siegel Group, speaks about helping families and other needy residents to keep them from teetering off into homelessness. Bizuayehu Tesfaye/Las Vrgas Review-Journal @bizutesfaye
Crowds camp out for Chick-fil-A opening
Dozens of customers camped out 24 hours ahead of the 6 a.m. Thursday opening of the new Chick-fil-A on Rainbow Blvd.
Cheapest listings for sale in Las Vegas
Listed for $39,990, 585 S. Royal Crest Circle, Unit #9 is one of the cheapest homes currently listed for sale in Las Vegas. (Caroline Brehman/Las Vegas Review-Journal)
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Terry Miller discusses Convention Center
Project Manager Terry Miller explains the phases of Convention Center construction.
Zappos treats their team members on Cyber Monday
Zappos rolls out a variety of food, drinks and special activities for all team members at their downtown Las Vegas headquarters for Cyber Monday. (K.M. Cannon/Las Vegas Review-Journal)
Team Hybrid at the 2019-Model Motor Trend International Auto Show
Among the companies showing off the 2019 model cars, Team Hybrid shows off its modified cars. Las Vegas resident David David talks about the team, which is in its ninth year exhibiting at the show, and his show car.
Black Friday Shoppers at downtown Summerlin and at the Arsenal
Black Friday shoppers at downtown Summerlin and at the Arsenal. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfYe
Black Friday shopping in Las Vegas
Black Friday sale shopers express their shopping experience. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Las Vegas Livestock recycling Strip food waste
Las Vegas Livestock collects and recycles food from many Las Vegas Strip companies. (Nicole Raz/Las Vegas Review-Journal)
Black Friday at Fry's
Shoppers line up for deals early on Black Friday at Fry's Electronics on Las Vegas Boulevard South. (Mat Luschek/Las Vegas Review-Journal)
Black Friday shoppers at Best Buy at 5 am
Black Friday shoppers at Best Buy at 5 am on Nov. 23. (Mat Luschek/Las Vegas Review-Journal
Black Friday - 1am Closing Time
Quiet night.
Black Friday - 12:30am - Best Buy Arroyo Crossing
Sam's Town Holiday Lighting Ceremony
On Wednesday, Nov. 21, 2018, Mystic Falls Park opened with its annual tree lighting ceremony, hosted by Boyd Gaming Executive Chairman Bill Boyd. The attraction features a Winter Wonderland theme and holiday-inspired laser light show, available daily Nov. 23 to Jan. 1. (Mat Luschek/Las Vegas Review-Journal)
What Is A Smart City?
George Karayannis, vice president of CityNow, Panasonic’s smart-city arm, explains. (Nicole Raz/Las Vegas Review-Journal)
Walmart uses virtual reality to train employees
Walmart Academy Facilitator demonstrates the VR training program being used by Walmart stores across the country.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like