LAS VEGAS (KTNV) — A report released by the Nevada State Apartment Association shows a 10-year run of rent growth in Southern Nevada’s apartment market has ended.
The report, issued by the NVSAA based on data provided by CoStar, shows southern Nevada apartment rents declining by 1.0% through the end of the fourth quarter of 2022 compared to one year earlier. Asking rents during the fourth quarter averaged $1,420 per month, remaining below the national average of $1,620 per month. That’s also down from third quarter asking rents of $1,451 per month.
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“When 2022 came to a close, rents were going down in Southern Nevada, standing in stark contrast to December 2021, when rents were growing at an annual rate of more than 20%,” said NVSAA executive director, Robin Lee. “This slowdown represents one of the most abrupt declines in rent growth of any U.S. market.”
The NVSAA report projects that 2022’s record-setting inflation will continue to cool apartment demand, with the average vacancy rate during the fourth quarter of 2022 at 8.6%, its highest level since 2013.
As of the fourth quarter, about 9,300 local apartment units were under construction, which will expand existing apartment inventory by 5.2% once complete. The bulk of the new developments are in the Henderson and Summerlin areas.
This report is provided by the NVSAA based on data from CoStar.
