Rents of single family residences increased almost 40% from 2019 to 2022. Recent market trends prove our rental market will experience downward pressure in 2023 and 2024.
A massive number of apartment complexes are planning to open in the Las Vegas Valley this year as 2023 looks to go down as a historic year for multifamily housing in the area, according to a new report.
As a result, apartment vacancy rates should climb, and rental rates should start to decrease.
The report shows 2023 will be a record-breaking year for apartment complex completions as 19 high-end projects (those with multiple amenities such as a pool, gym and dog park) have or will be completed this year or by early 2024 — a stark contrast to 2022 when only four came on the market, adding 882 units. Read the full article in the Las Vegas Review Journal.
Single Family Home Rentals
Update August 19th, 2023:
Single Family Rentals: 2,200 on the mkt and 1,500 leased in last 30 days. Our rental market is slowing…it’s taking 14-21+ days to rent houses in Las Vegas. This is a huge shift from the past 10 years, where rental inventory was low and demand was high.
The Las Vegas housing market is unique because of its strategic importance in the southwest (hub between multiple major markets), growth/growth potential, and relative affordability.
Here are links to some articles about the economic growth and long-term sustainability of Las Vegas:
- Hollywood 2.0: Lawmakers to seek multibillion-dollar tax incentive package to bring Sony Pictures to Nevada
- A’s pivot to new site for Vegas baseball stadium, lowering public funding request
- Lake Mead water level rising after federal ‘high flow’ water release
- 99% of the water used inside of the Strip casinos is recycled
- First look: Brightline’s Vegas high-speed train station revealed
The Las Vegas rental market is undergoing a post pandemic stabilization.
Rent rates have stabilized in Las Vegas and Henderson at higher rent rates than pre-pandemic (2019 and before).
During the pandemic institutional investors, iBuyers, individual investors, pandemic migration, low interest rates and government policy created a 24-month perfect storm to inflate real estate values and rent rates in Las Vegas.
We are now in the post pandemic phase of the Las Vegas rental market.
There are multiple factors impacting our current rental market:
Pandemic household formations which is causing rental demand to stabilize.
Due to decreasing home values some Sellers are choosing to become accidental landlords increasing rental supply
The work from home trend is slowing as companies are calling workers back to the office.
Here are some articles for additional reading:
Current Market Trends
Monthly sales volume has fallen from a high of around 3500 monthly units in March/April 2022 to around 1250 units in the last thirty days.
Where will rent rates go in 2023…it all depends on supply and demand. It’s too early in the year to predict.
The rent increases between Fall 2020 and Spring 2022 were staggering (25-40%) and have proven to stabilize at elevated rates.
Are there investment buying opportunities for cash investors again in Las Vegas?….lower housing prices and elevated rent rates. The concern is demand.
Market Value Estimates
Zillow, Realtor.com and Redfin all offer their own estimates of market value.
I am noticing the “zestimate” for sales market value and rent rates are both inflated by about 10% (January 2023) but their Zestimate algorithm seems to be slowly catching up to our recent market changes.
Institutional Investors
The unknown is how the institutional investor purchases will impact our market long-term.
We are in unprecedented times with the billions and billions of dollars Wall Street has pumped into the residential real estate market.
If you’re unfamiliar with institutional investors in the sunbelt region google it or read an article like this one from Multi-Housing News or this article about Las Vegas Housing Trends in 2023 and 2024.
Some Wall Street investors are even funding purpose built rental neighborhoods (Build To Rent or BTR)….think apartment building living but all detached single family residences.
Every neighbor is a renter…….
Las Vegas Rental Statistics Example # 1
Westwood Village neighborhood:
3 bedroom Green Valley, Henderson 89074
Market rent – $1,895/mo
Market value – $400k
Swipe right for additional photos
Las Vegas Rental Statistics # 2
Green Valley Ranch:
4 bedroom Green Valley Ranch, Henderson 89012
Market rent – $2300/mo
Market value – $500k
Swipe right for additional photos
Las Vegas Rental Market Statistics Example # 3
Summerlin West **new home**:
3 bedroom West Summerlin, Las Vegas 89138
Market Value – $750,000
Market rent – $3500/mo
swipe to view more photos
Las Vegas Rental Market Statistics Example # 4
Red Rock Country Club
(guard gated)
4 bedroom Summerlin South 89135
Market Value – $1,200,000
Market rent – $5500/mo
Swipe right for additional photos
Click to view more examples of market value and rent rates.
Low Property Taxes
Low property taxes are one of the main reasons Las Vegas investment properties are so attractive.
On average property taxes are about 1/2% (.005%) of the purchase price. For example, a property purchased for $350k would incurred annual property taxes around $1,750 annually ($146 monthly). Here’s a more detailed article we have written about Las Vegas Property Taxes.
This public search page can be used to determine current property taxes for any property in Las Vegas and Henderson: Clark County Treasurer.
The Future of Las Vegas...our city continues to grow.
The greatest racing spectacle on the planet and the sports and entertainment capital of the world collide as Formula 1® will light up the Las Vegas Strip on November 16-18, 2023, for an unforgettable race cutting right through the neon heart of the city.
Formula 1 Las Vegas Grand Prix is expected to bring about $1. billion in spending to the city, according to economic research firm Applied Analysis.
The Las Vegas Grand Prix’s 3.8-mile track will weave past world-famous landmarks, casinos and hotels as drivers push their luck to breaking points at speeds of up to 212 mph.
2024 Super Bowl
Slated for February 11, 2024, the Super Bowl will take place at the recently opened Allegiant Stadium and marks the first time Las Vegas and the state of Nevada will welcome the Super Bowl.
The 2024 Super Bowl is expected to bring about $600 million in spending to the city.
Las Vegas is expected to grow its portfolio of pro sports teams to include MLB and NBA in the near future.
Investing in Residential Real Estate is what we do.
Did you know? Las Vegas investment properties have low operating costs compared to other major markets: low maintenance costs, low taxes, and reasonable insurance costs.
There are buying opportunities in Las Vegas again.
