Report shows local 10-year run of rent growth is over

A report by the Nevada State Apartment Association shows a 10-year run of rent growth in Southern Nevada’s apartment market has ended.

The report, issued by the NVSAA based on data provided by Costar, shows Southern Nevada apartment rents declining by 1 percent through the end of the fourth quarter of 2022 compared to one year earlier. Asking rents during the fourth quarter averaged $1,420 per month, remaining below the national average of $1,620 per month. That’s also down from third quarter asking rents of $1,451 per month.

“When 2022 came to a close, rents were going down in Southern Nevada, standing in stark contrast to December 2021, when rents were growing at an annual rate of more than 20 percent,” said new NVSAA Executive Director Robin Lee. “This slowdown represents one of the most abrupt declines in rent growth of any U.S. market.”

The NVSAA report projects that 2022’s record-setting inflation will continue to cool apartment demand, with the average vacancy rate during the fourth quarter of 2022 at 8.6 percent, its highest level since 2013.

As of the fourth quarter, about 9,300 local apartment units were under construction, which will expand existing apartment inventory by 5.2 percent once complete. The bulk of the new developments are in the Henderson and Summerlin areas.

This report is provided by the NVSAA based on data from Costar, a leading provider of commercial real estate information.

The Nevada State Apartment Association is a nonprofit organization that provides a variety of services to its 1,057 community, property management and business partner members statewide, including legislative support, education and community outreach. For more information, visit NVSAA.ORG.