Las Vegas and Henderson Rental Housing Market Articles

Another year. Another rising real estate and rental market. 2021 ended on a strong note, with rental prices at an all time high and the median sales price of an existing property approaching $450,000. The year defied expectations and appeared to set the stage for another year of appreciation. So, what can we expect with the rental market during 2022?

As much as we experienced steep appreciation during 2021, we anticipate a strong market, strong demand and more stability. Rental prices should remain at current levels with modest appreciation. Of course, much depends on the general economy, unemployment and inflation. Inflation leads to higher costs of goods, such as building materials and goods. As a result, maintenance costs rise for an owner of rental property. Fuel also rises, which contributes to rising costs of labor. As a result, both the cost of building homes and maintaining them rise, leading to rising real estate prices. This combined with strong demand, leads to higher rental prices, which we have seen over the last couple of years. Also, HOA expenses can also go up, such as monthly or quarterly dues.

Additionally, when real estate prices rise, so do property taxes, since they are typically assessed based on value. Owners of rental properties have to now pay out more, sometimes considerably, based on these new assessed values.

As a result, rental rates have seen considerable appreciation as they offset these higher costs and as demand continues to be strong.

 

Aerial view of Las Vegas Lake, Nevada.

It may appear that with thousands of residential properties built every year within the Las Vegas valley, land – or the lack of – may become an issue. However, builders have gotten creative in recent years to accommodate the demand for new housing.

For example, one nationwide builder embarked on purchasing smaller parcels of land and then subdividing them into smaller lots to build, for example, only 20 homes within a community. Because the lots were in more of a rural area of the city, requiring a specific minimum size, the builder was able to provide semi-custom homes for a premium price point. They took advantage of smaller parcels that perhaps other builders had passed on created a niche for themselves. And with great success.

Though Las Vegas has experienced significant growth and residential density, we can say that land is still readily available. While large parcels may be less common within city limits, a number of builders have decided to go into the suburbs, offering uniquely crafted communities for those willing to live a little ways from the hustle and bustle of the city.

For example, Cadence in Henderson is off Lake Mead Pkwy, a mere 10-15 minutes away from Lake Mead yet a fair distance from downtown and the Strip. However, with shopping available within a reasonable distance, community parks, pools and playgrounds within the community, multiple builders have embarked on building over 13,000 homes within the master plan. And thus far, they are not having difficulty selling them – for a premium!

In the far Northwest and edge of the city, Skye Canyon is currently in progress, with thousands of homes already completed and occupied. The appeal? The community prides itself on its close proximity to the northwest mountains which offer outdoor activities and winter skiing. The community itself offers parks, playgrounds and a recreational center, all designed to reflect a mountain type lifestyle. Homes are selling well, also for a premium.

So, while building large communities in the central part of the city may have slowed down, developments in the suburbs are rapidly gaining popularity as they offer numerous amenities, all contained within the development itself. As Las Vegas continues to expand and grow, we can only expect builders to develop more master planned neighborhoods as they look for ways to accommodate demand in housing.

Aerial view of residential neighborhood in northwest Las Vegas, Nevada.

September was another record setter in the Las Vegas valley! Both resale and rent values increased on average, adding to an already record setting year. The median price of a home rose to $406,500 according to Las Vegas Realtors. Rent values rose on average between 3-9% (Zumper).

Though Las Vegas saw an increase in resale values between August and September, the fact is, it’s a far cry from the appreciation seen thus far in the year. As a matter of fact, the median sales price remained at $405,000 the two months prior, barely making an increase during September.

In essence, the market is taking a much needed break. Constant and significant appreciation can lead to over inflated prices which is not healthy for a market. Already, many individuals are out priced of a home, compared to just 6 months or a year ago. Fortunately, interest rates are remaining low, allowing many to to still qualify for high mortgages. And for the time being, rates should remain that way.

However, what does this slow down mean for the market? At this time, it is simply means that the market is pumping its brakes a little due to significant appreciation over the last year. Additionally, as the end of the year approaches, a seasonal slow down is typically expected.

Of course, a real estate market is based on many factors – economic climate, jobs, consumer confidence and interest rates, to name a few. These can affect a real estate market in a positive or negative way. For the time being, indicators appear to point to continued appreciation, though modest. Inventory continues to remain low, both in homes for sale and for rent. And most buyers are still in the game.

Eviction Notice Form

Well, here we go again. Another eviction moratorium. Many landlord’s we’re finally breathing a sigh of relief when it looked like things we’re going back to normal at the end of July. And for 2 days, things we’re technically back to normal. Until August 3. That’s when the CDC enacted a new eviction moratorium, that this time goes through October 3, 2021. For those rental property owners who have been relying on mortgage forbearance because they lost rent income – income they relied on – this was unexpected.

To clarify, we’re not here to discuss the reasons for the moratorium, the motivation or why it was passed. We’re here to explain how this latest moratorium works and what you can do if you own a rental property that has had its income, in essence, frozen. While what we say is not going to be a automatic fix, it can be financial damage control.

So, how does this latest moratorium work?

It applies to any county in the Unites States that doesn’t already have a moratorium in place that meets or exceeds the CDC one, like a state or county moratorium, and where the county has a substantial or high COVID transmission rate. Where does your county fall? Here’s the link from the CDC that shows transmission rates: https://covid.cdc.gov/covid-data-tracker/#county-view

If your in Clark County Nevada, Las Vegas, Henderson, North Las Vegas, Boulder City, which is where we’re at, well, your in a high transmission rate location and subject to the CDC moratorium.
A tenant, in order to be covered by the moratorium, has to meet some qualifications:

  • They have had to try and obtain rental assistance
  • They can’t make more than $99,000 in 2020 or if married and filing jointly, more than $198,000.
  • They cant make their rent payment due to loss of job, reduction in hours or have medical bills
  • They are trying to make partial rent payments to the best of their ability
  • They would become homeless if evicted

The moratorium covers a lot of situations.

Now of course, a tenant does have to complete a specific declaration via a CDC form to qualify. And the landlord can take steps to validate the truthfulness of it, to make sure their hardship is legitimate and meets the standard of the CDC moratorium. The moratorium does cover a broad spectrum.

So, say as a landlord, you get the declaration form from a tenant or maybe they already qualified previously under the moratorium we had between March 2020 until this past July and handed you the CDC declaration (which that is still in effect). What can you do?

Work on mitigating your losses. The eviction moratorium is in effect no matter how you look at things. Though tensions may run high, work hard to maintain a positive relationship with your tenant. This will help in preserving your property. A soured relationship, or one that turns into distrust, is never in the best interest of your property. It creates tension and hard feelings. Focus on the end result, one day getting your property back in hopefully, reasonably good condition. A positive relationship will go a long way in that.

And focus in on the options you have for mortgage assistance, beyond calling your bank for mortgage forbearance. Or simply throwing in the towel on your property. Now, this may take work and some research to find available resources in your state or county to help compensate you for lost rent. But it is possible and we’ve seen it first hand, owners getting checks for thousands of dollars for unpaid rent. Look up your states and counties housing department sites and see what available resources there are, what applications may need to be completed. Work to mitigate your losses as much as possible. In many cases, money has been set aside to offer help. It’s just a matter of finding it, applying for it and then collecting it.

So, while this is all far from the ideal and not what investors and rental property owners signed up for, it’s the new, temporary norm. And so, we’ve all had to change and adjust to the unexpected. If you approach it the right way, take the right steps, be proactive, get the help available, you might be surprised at how things work out for you.

Property Management in Las Vegas

LAS VEGAS, Nevada USA

Another month. Another record. That seems to be the trend for many months. The latest: June 2021 set another record for the median sales price in Las Vegas: $395,000; a nearly 22% year-over-year increase. It’s hard to believe that just 10 years ago, the median price of a home in the valley was just under $120,000. Much has certainly changed. So, what’s in store with these record prices? Are they sustainable?

While opinions vary as to sustainability, affordability is definitely the question on the minds of many. The current price point of many homes, even with low interest rates, is making the dream of owning a home impossible. As far as sustainability, we expect more homes to start coming onto the market as homeowner’s and investors decide to cash out with substantial equity.  However, many investors are also entering the market in Las Vegas, looking for properties to buy, as rents have also been increasing considerably.

As a result, while we may see some slow down with real estate prices over the coming months, there is still a shortage of inventory and plenty of buyers. Barring any significant economic changes, prices should continue to remain strong and modestly appreciate.

Aerial view of residential neighborhood in northwest Las Vegas, Nevada.

The Las Vegas real estate market is on fire. There is no doubt about it! A shortage of inventory continues to drive prices up as home buyers wish to take advantage of low interest rates. As a result, March 2021 was another record setter.

Average price of a single family home sold: $363,000 (according to Las Vegas Realtors)

Average price of a condo / town home sold: $194,000 (according to Las Vegas Realtors)

Single family homes are up nearly 14% from last March (2020).

As of right now, appreciation in the market appears to be a sign of things to come. While home builders are adding inventory, it is limited compared to buyer demand and a lack of new resale inventory is keeping supply short. Additionally, as Nevada plans to end COVID restrictions beginning June 1, we expect there to be a strong economic reaction as tourism is expected to increase and further reduce unemployment.

The Las Vegas real estate industry appears to be poised for growth and appreciation over the coming months.