The lack of available homes, which drives up sales prices in Southern Nevada, continues to have an effect on the local rental market as well.
The average monthly rent for a family-sized home in the Las Vegas Valley climbed to $1,328 per month in the first quarter of 2017, according to a report compiled by RentRange. That’s a jump of more than 3 percent over the same period from last year for a three-bedroom, single-family home. Nationally, the average rent moved up 2 percent to $1,379 per month.
Apartment rents rose from last year as well. Averaging reports from Apartment List and Zumper, a one-bedroom apartment in Las Vegas cost $810 per month and a two-bedroom unit cost $990 per month. Those rents increased about 5 percent from the same time last year.
In Henderson, Zumper reports an average rent of $980 a month for a one-bedroom apartment and $1,100 for a two-bedroom unit. Both climbed sharply from a year ago, with the one-bedroom up 15.5 percent and the two-bedroom up 11.7 percent.
“Rental rates continue to be on the rise,” said Brian Gordon of Applied Analysis.
“The fundamentals of the economy continue to generate demand within the housing market.”
Gordon also pointed to improved offerings as a reason for increasing prices.
“New product entering the market along the 215 Beltway has also elevated the level of product offered and price accordingly. The local housing market, including the rental market, appears to be gaining momentum,” Gordon said.
The summer months typically boost home sales volume and prices in the local market, leading to speculation that figure will continue an upward trend through the year.
“Considering the economic factors that contribute to the Las Vegas housing market, in addition to the overall economic health forecasted for the year, we expect rental prices will rise,” said Mike Mangasarian with Real Property Management of Las Vegas.
Demand continues to outpace the supply of available homes for sale or for rent in Southern Nevada. The vacancy rate, which measures unoccupied homes, dropped slightly to 4.16 percent through the fourth quarter of 2016. That represents a fairly significant lag behind the national rate of 4.9 percent.
Local home sales prices unexpectedly surged during the winter months as well, with the median resale price rising 10 percent year-over-year to $242,000 in March. Shortage of home stock looks to be the primary culprit, as a supply of about three months exists — half of the six-month inventory considered healthy by real estate professionals.