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StumbleLas Vegas apartment rents at lowest rate in 6 years
Move-in specials and deals on amenities, such as these at the Mountain Vista apartment complex, are among enticements being advertised to attract Las Vegas Valley renters. High unemployment and stagnant growth have reduced the demand for apartments.
Wednesday, July 21, 2010 | 11:13 a.m.
Apartment rents continued to slide during the second quarter in the Las Vegas Valley to their lowest level in six years, but the occupancy rate at complexes has leveled off, analysts said.
The average monthly rent requested by landlords during the second quarter was $765, down from $777 in the first quarter, according to Applied Analysis, a research and consulting firm. Landlords were charging $857 in the second quarter of 2009, meaning rents have dropped nearly 11 percent in a year, the firm noted.
The apartment market has been hurt by people leaving the valley because of the loss of gaming and construction job, analysts said. Some tenants have turned to buying or renting homes because of low prices and low lease rates.
“Much like the market experienced in the hotel industry during the past two years, apartment owners are finding the need to reduce prices in an effort to maintain their occupancies,” said Applied Analysis Principal Brian Gordon.
Gordon said the price-cutting should start to slow within the next six months, but the job market will determine the timing of the apartment market’s recovery.
The occupancy rate during the second quarter was 90.7 percent, about the same as the first quarter. That is still well below five-year historical averages of 93.7 percent, the firm reported.
The flow of renters to homes could slow because of the expiration of the homebuyer tax credit and the possibility that interest rates will rise by the end of the year, said Jake Joyce, project manager at Applied Analysis.
The highest average monthly rent charged in the valley during the second quarter was $919 in the southwest valley. The lowest average rent was $648 in the northeast. The central/east part of the valley had average rents of $696.
Others include the northwest, $770; north, $781; west, $766; south, $776 and southeast, $840.
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" The average monthly rent requested by landlords during the second quarter was $765, down from $777 in the first quarter, according to Applied Analysis"
What does this mean? Are we talking one bedrooms, two bedrooms, three bedrooms? what is the average rent as per square footage offered??
When I list the average monthly rents, that is for all units combined whether it is one bedroom, two bedroom or more.
@environprotector - I'm sure that means literal average of all available apartments...
I think most people will be buying houses now. With rents still very high in my opinion for Las Vegas. My mortgage is $415 a month for a house built in 2005, my advice is to take advantage of these foreclosures like I did. Of course you have to have money down and good credit.
You can buy a 2BR/2BA condo for $50K and pay a mortgage of only $350 a month, so why rent for $765 and have nothing to show for it?
I paid $700 a month to rent a 2BR unit in 1996 when young people could not get a mortgage without a huge income, huge downpayment and long job history. 5 years later they were giving $300K houses to 19-year olds who made $300 a week from fast-food jobs. All those houses are now on the market.
or if you have the cash like I did, just buy a house with cash minus a mortgage. You get the foreclosure much faster, and if your credit is bad you don't have to worry about a large down payment or interest rates. We bought a 2005, almost brand new since the house was owned by snow birds who lived in Florida and foreclosed. We lucked out, but more and more people are buying. Why rent when it costs more at the end. We were renting a 2 bedroom for $780 a month before we bought the house.
WOW!! A two bedroom/two bathroom condo for $50K, something like that here in Chicago will cost you about $200,000 if not more. The average rent for a decent place here is $1200 a month and up. Maybe I should be packing my bags and heading for Las Vegas.
To LasVegas2009, just how can the unemployed people in Vegas qualify for a home loan?
retiredgrabdma: Even with a high 14% unemployed you still have a population of 86% still making money. Not everyone is unemployed and in the long run buying a house is a huge discount compared to renting. Im a sales manager and when I hear that from my employees I tell them I do not expect them to sell to the 14% but they had better sell to the 86% or I will make them part of the 14%. Most of us are working. Thats the good news........
There are thousands of condos avail on the market now. Yes u can buy an ok condo for 50k. 350 payment plus assosiation fee apx 150 so ur spending 500. You save 200 a month but are taxes included? Condo appreciaton is going to be slim to none over next cpl years so don't plan to make much money. Don't forget the 6-7 percent u pay to sell in the future and what were the closing cost? You also have upkeep and most 50k condos need work. Plus your committed to the loan and if u have to leave better rent it out. In the short term I recommend renting than buying a condo. If you have guarenteed income and are ready to make your purchase as a long term home. You'll make a cpl dollars
you can thank all the realtors for this drop in prices.
you're all welcome.
i mean, you "blame" us for making all the prices go UP, we'll gladly take the "blame" when prices go down.
js2323
Being from Chicago myself and having lived in apartments Downtown, yes Vegas apartments are a steal. I paid $895 for a 2 bedroom in Vegas before I moved back to Illinois last fall. The 2 bedroom I lived in downtown Chicago back in 2000 was $1600!!! But I'll be honest - NOTHING, ABSOLUTELY NOTHING compares to living Downtown. There is a vibrancy and excitement you dont' get in the neighborhoods in Vegas. You can walk to some very nice restaurants and bars (and not pay $15 for a glass of wine or a mixed drink) in Chicago. And there is a sense of community whereas not too much in Vegas
What's frustrating is you only get these decent mid level prices if you are a new resident - if you are a current resident the management company is doing everything it can to screw with you. I found out i was paying the same price for a one bedroom that others in the same complex were paying for a three bedroom - I was offered to pack up my stuff and move to another unit IN THE SAME COMPLEX for $100 less (plus new security and processing fees) - I said I'll pack my stuff and move elsewhere thanks.
stevem, thanks for scamming us with short sale deals that take 10 years to close, telling us your working on it, its almost closing, its closing next week, its closing tomorrow! You got it!
... just to have it declined by the bank, or the 'bank' takes it off the market. Sure buddy. I've been through 5 attempts to buy a rental house with multiple 'realtor' agents, and nothing but lies lies lies.
You all want work we got plenty in Pennsylvania right now with the natural gas drilling. The companies are lining up and they cannot find enough people to work in the field for pretty good pay. Cost of living very low, housing cost some of the lowest in the country, very good schools. Also if your interest is in coal mining there is plenty of work in that field.
I know at least 4 families that moved to the valley some years ago and now they are heading back to Pa.
p
pele, yeah but its Pennsylvania, wtf is there? Humidity? Crime? flat land? Old? Nothing?
YAWN... next...
wait til the retroactive unemployment checks go out in August for 8-10 weeks of unemployment. That $3000 to $4000 WILL BE the right amount to get out of town.
Pennsylvania is not flat and it has been humid around here..we don't have crime?
Retroactive unemployment checks? WOW!!! hey I was out of work for a while in 96 where is my money.
Lasvegas2009,
86% are employed. Got it. How many are actually qualified with their income? Furthermore, you're assuming those 86% have good credit and cash for downpayment.
Bad assumption. When you assume, you're making an ass out of u and me....that's assume.
Sorry BuckWargo. Some people do not understand what the word "average" means.
I guess from the owners standpoint, less rent is better than no rent.But house rental prices are coming down as well and looking more attractive.
I'd rather rent in this town. The out of pocket costs are less and home prices wont be going up anytime soon.
I know several people in Las Vegas that can't sell their houses and can't move. Who needs HOA morons, closing costs, property taxes..
I'll keep my cash in the bank and rent.
Rent=Freedom
Property taxes on a 50K condo here in LV are next to nothing, probably about $400 or so a year. Rental makes no sense at all if you can scrape up a few thousand for a down payment.
amused
Try reading the news once in awhile. Then you would know about the "retroactive" unemployment benefits.