LV apartment rental rates decline in third quarter

Wednesday, Oct. 21, 2009 | 1:19 p.m.

More stories about business and the economy

Apartment rental rates in the Las Vegas area fell in the third quarter as unemployment rose, a report issued Wednesday shows.

RealFacts, a company in Novato, Calif., that tracks rental rates around the country, said the average asking price for apartments in the Las Vegas area in the quarter was $837, down 2.1 percent from $855 in the second quarter and down 5.7 percent from $887 one year ago.

With unemployment in Clark County now at 13.9 percent, the local apartment occupancy rate of 91.1 percent is down 2.6 percentage points from 93.7 percent one year ago, according toRealFacts data.

"Renters are in a great position to secure favorable terms for rental property and landlords are offering good value for their rental properties. The conditions in the rental market reflect people’s attitude throughout the country. People are tightening their belts by reducing their spending and consumer debt and increasing their savings," RealFacts said in its report.

Nationally, the average third-quarter rental rate of $965 was down from $968 in the second quarter and $1,002 one year ago, RealFacts said.

In the Las Vegas area, average prices in the third quarter were $819 in Las Vegas, $872 in North Las Vegas and $968 in Henderson.

Average prices locally ranged from $546 for studios to $1,047 for three-bedrooms.

The pain experienced for Las Vegas-area apartment owners was illustrated in the second quarter financial results of Camden Property Trust of Houston, which operates 29 Southern Nevada apartment complexes with 8,016 units under the Camden and Oasis brands.

Camden reported that for 2,889 of those units in the Las Vegas and Henderson areas, which were stabilized and owned as of January 2008, rents and occupancy rates fell during the first half of 2009.

Camden reported the average rent for those units of $825 through June 30 was down 4.7 percent from $866 in the same period of 2008; while occupancy of 93.5 percent was down from 94.2 percent.

Discussion: 7 comments so far…

By fogcity

10/21/09 at 2:22 p.m.

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How does this affect the investors who bought houses earlier this year thinking they can make a fixed per cent return. It seems their calculations may have been off if they assumed a certain rental rate.
By stevem

10/21/09 at 3:16 p.m.

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yep, you are correct, fogcity.

i've been saying this in postings for nearly 6 months now.

all the investors that swooped in and bought all those foreclosure homes thinking they could rent them out for hundreds more per month than the mortgage payment are going to see the margin get thinner and thinner and many will go into foreclosure...leading to another wave of them.

the economy and population is going the wrong direction for rentals right now.

when we finally, if ever, get a year over year INCREASE in visitors coming into the airport...that's when things might start turning around.

and i don't see that happening anytime soon. 3,000 jobs lost yesterday at sun microsystems alone.

goodbye, vegas. it was fun.
By Bodytalk555

10/21/09 at 3:45 p.m.

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Las Vegas has always been a rough town and now it's even more so.
By wizardofOz

10/21/09 at 6:45 p.m.

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What's even funnier (sadly) is all these "investors" (suckers) who are shelling out $500 - $1000 Buck$ to go to these "Make Big Bucks In Real Estate" seminars, plus gobblin' up all the books, tapes, DVD's, e-books, white papers, and get-rich-with-real-estate-in-30-days-or-less plans they can get their hands on.

TRUE STORY:

One particular Real Estate Guru I PERSONALLY called, wanted $4000.00 Buck$ UP FRONT for just a "Half-day guided bus tour of Clark County properties guaranteed to make me money." (That IS NOT a misprint, $4000.00 WAS the price.) "These gems were just ripe for the pickin', and only WE know where they are," I was told by this sharpie with an out of state telephone number.

--

What kind of dolts fall for this....???

The only people making any money off of all this waste-your-time-trash are the ones who are peddling this garbage.

PLUS a LOT of these Guru Shysters LIVE OFFSHORE.

(If ya' go ahead and BUY this B.S., "investor" (sucker), see if you can go ahead and try and sue 'em to get your wallet and shirt back...outta be a GOOD LESSON for ya'.)
By nednougat

10/21/09 at 7:01 p.m.

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Don't forget that all the Cali investors who bought homes at bargain prices here recently are driving down single family rental prices, which affects apartment rentals. Do you really think the investors care if you have a weed covered yard, with 3 or more animals plus an old oil leaking beater in the driveway? For sure, the $75,000 to $150,000 market isn't in an HOA. We've got a long way to go, and it sure ain't up.
By vegasm

10/21/09 at 10:45 p.m.

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With my credit unions current 15 year rates, I can get a $70,000 condo for about $490.00 a month before tax/insurance.

I pay $630 for a ghetto apartment.

Better believe I'm leaving the apartment market when lease expires!!
By environprotector

10/23/09 at 3:39 a.m.

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When the going gets tough, the tough rent. All others leave town...

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