Poor Economy Driving Apartment Rental Rates Down - 8 News NOW

Poor Economy Driving Apartment Rental Rates Down

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LAS VEGAS -- The number of people renting apartments is going up nationwide, according to a new Reuters's report. However locally, the trend appears to be the opposite. With less demand and renters looking at homes, rent rates are being driven down as complexes struggle to get tenants.

No matter where you are in the valley, chances are you'll come across a sign attempting to attract renters as apartment complexes do all they can to bring in business. But affordable options like renting or buying a home for about the same price is driving down the rental rates at apartments. It was moving day for the Medina's less than a week ago, but now it's time to unpack and settle in.

"It was a hectic situation because we were looking for the right area to move into," said Rome Medina who recently moved into apartment.

Before deciding on their apartment though, the family did quiet a bit of apartment hunting. What they found is that there are better deals than in years past.

"For instance you get the paper with their old price crossed through and the new price knocked off by a couple of hundreds dollars," Medina said.

"Prices have dropped dramatically. We use to charge $1,000 for two bedroom apartments and we had to drop them all the way down to $700," said Ginger Reed who manages the Mesa Ridge apartments.

She says besides dropping rates many complexes are doing what they can to bring in new renters. "All the giveaways that I possibly can to keep me in business and to keep the complex from going broke," Reed said.

"The apartment community was king back then and today I don't see a lot of that," said CEO Steve Antuno, Property Management Las Vegas.

Antuno is an apartment locator and says those great deals complexes are offering are partly because of the stiff competition for renters who might become home buyers instead. "You're going to pay certainly no more and possibly less than you would to rent," he said.  Antuno says it's unclear just how long the low rent rates for apartments will last.

Still, Medina says he doesn't plan to pay them for that long. He plans to look at buying a home in the coming years. "After I establish my career I defiantly want to buy a house down the line. It is something we are looking forward to," said Medina.

Antuno says another reason people are looking at renting a home instead of an apartment is because some complexes have stricter guidelines when it comes to credit.

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