LAS VEGAS (KTNV) — A report released this week by the Nevada State Apartment Association shows apartment rents in Southern Nevada declining during the past quarter while vacancy rates are rising from the all-time low set last year.
The report, issued by the NVSAA based on data provided by CoStar, shows Southern Nevada apartment rents growing by only 2.5 percent through the end of the third quarter of 2022 compared to one year earlier. Asking rents during the third quarter averaged $1,451 per month.
That’s down from $1,480 during the second quarter, but up from $1,403 one year earlier according to NVSAA.
“Rents are expected to continue to decrease through the remainder of the year as vacancy rises from the all-time low we saw in 2021,” said new NVSAA executive director, Robin Lee. “Las Vegas continues to attract new residents with its affordable cost of living compared to other western markets, especially California. Even with record-setting inflation, local rents are still lower than the national average apartment rent of about $1,630 per month during the third quarter.”
For the time being, she said local apartment vacancy rates have spiked, with the average vacancy rate during the third quarter of 2022 at 7.5%. That’s up 3.6% from the same time in 2021. There are now more than 13,500 vacant apartment units in Southern Nevada, according to the report.
As of the third quarter, about 8,600 local apartment units were under construction, which will expand existing apartment inventory by 4.9% once complete. The bulk of the new developments are in Henderson and Summerlin.
After Southern Nevada’s record-breaking rent growth in 2021, the report suggests the local apartment market is starting to return to more normal and seasonal trends.
This report is provided by the NVSAA based on data from CoStar, a leading provider of commercial real estate information.
