The rental market in southern Nevada continued to accelerate last month.
Las Vegas rental apartment prices rose in May, with one of the fastest rates in the country in May, amid strong demand and low inventory levels and as the economy made up for lost time.
The typical rental rate for a home in the Las Vegas area rose 17.3 percent year over year in May, up from an 11.3 percent annual increase in April, according to listing page Zillow.
The valley’s rental growth last month put Riverside, California in second place among the 50 metropolitan areas listed in a Wednesday report by Zillow. Phoenix topped the list with a rent increase of 17.7 percent.
Like other industries, the Las Vegas rental market has seen turmoil and questions after the coronavirus pandemic. Many tenants have tapped unemployment benefits or economic funds to pay their rent, while the huge job losses in the casino-heavy region have been large, government-ordered evictions have kept people in their homes, and landlords have faced increased competition Sales market bottomed out Mortgage rates fueled a real estate buying frenzy.
But since people worked from home without having to commute, and since salespeople cashing in on the buying frenzy needed an apartment until their new house was ready, a lot of people have looked for rental apartments.
“It’s just a close one,” said Steve Marlis, co-owner of Total Real Estate of Nevada, a real estate management firm.
Marlis, whose company manages around 830 homes in the valley, said he spoke to people who have completed multiple rental applications and are struggling to find a place.
“You will just be left out,” he said.
Chris Glynn, Zillow’s chief economist, told the review journal that with the economy reopening due to coronavirus restrictions, tenants will have more confidence in their finances and jobs.
He also noted that many people have moved to southern Nevada and other relatively lower-cost areas to work remotely.
“This is helping to boost the rental market in places like Las Vegas,” he said.
The accelerated rental growth in the US also reflects “a similar pressure” on the home market: a lack of available single-family homes and an increased demand driven by the pandemic as well as the desire for more space and affordability, according to Selma Hepp, deputy chief economist with housing. CoreLogic tracker.
Tamra Trainer of Platinum Real Estate Professionals, Las Vegas realtor, recently said she has a client buying a Henderson townhouse as an investment and that while the sale was ongoing, people were already fighting bidding wars over it from the buyer.
“There’s just no inventory,” she said.
Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.
