LAS VEGAS (KLAS) — Apartment rent in Las Vegas is slowly rising after a low earlier this year, according to a report from the Nevada State Apartment Association (NVSAA).
The report notes while rent in Southern Nevada steadily increased from 2015-2019, the current increase is moving at a sluggish pace.
Regardless of the slowdown, the $1,100 average rent during the second quarter of 2020 is still slightly higher than a year ago, when it was $1,080. It notes this number is also 5% higher than the pre-recession peak.
The average vacancy rate is close to 7% and up 0.4% from last year. The association says this is still down from almost 11% at the height of the Great Recession.
NVSAA expects the vacancy numbers to change later this year as the eviction moratorium expires next month. They also anticipate a slowdown in rent growth and apartment construction during that timeframe.
“Fortunately, about 90% of Nevada renters have been able to make their monthly rent payments during this crisis,” said Susy Vasquez, NVSAA executive director, in a news release. “But with the enhanced unemployment benefits at a standstill and the pending expiration of the eviction moratorium, we expect these numbers will change during the third and fourth quarters of this year, even with apartment owners and operators doing a good job of working with their residents.”
Apartment development is booming thanks to two factors: rising rent and declining vacancies. The association says since 2015, more than 13,500 units have been built in Southern Nevada, and thousands more are expected over the next years.
As of the second quarter of 2020, NVSAA says 3,117 units are under construction in the Valley, with 45% in the Enterprise, Henderson, Spring Valley and Summerlin areas.
Vasquez noted the increase in units will drive up the vacancy rate.
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