March 2018 – As the Las Vegas real estate market continues to make national news as one of the fastest appreciating markets in the country, it is noteworthy to discuss residential rental rates and what the future holds for landlords and tenants alike.
As of February 28, only 2031 homes were active and available on the Multiple Listing Service for all areas of Las Vegas, Henderson and North Las Vegas. This figure includes all different types of residential dwellings, including condominiums and town homes. This figure shows the limited availability of rental properties throughout the Las Vegas valley, creating a competitive market for tenants. This, in turn, is prompting landlords to raise rents. By how much?
Of the total amount of properties available, only 300 are priced at $1000 / month or less. The vast majority are condominiums. This figure in itself shows the very limited supply of lower priced properties which is causing affordability issues for many. 669 properties are priced between $1001 – $1500 / month. The remaining properties are priced over $1500 / month.
This shift over the last 3 years specifically has caught many renters by surprise. Landlords are raising rents with each lease renewal and available rentals have seen an average 15% appreciation over the last 2 years. Some areas of the valley have seen even higher appreciation rates.
Affordability is certainly on the mind of many. And it doesn’t seem the issue will go away. Both resale values and rental rates are expected to increase over the course of this year, with resale values appreciating at one of the fastest rates in the country. How this topic will be addressed is yet to be seen. One thing is certain: the affordable real estate market of 7 years ago is gone.
Steve is the founder of Nicklin Property Management & Investments, Inc. His experience in property management and as a real estate broker exceeds 30 years.