The Las Vegas apartment market saw a large increase in the average asking rent and a decrease in the vacancy rate this quarter, according to data from our apartment survey, collected by the Center for Business and Economic Research (CBER). This was the eleventh consecutive quarter where the average asking rent increased. This quarter saw a 2.0 percent increase in the average asking rent and the average asking rent is now $956. Asking rents are up 6.2 percent since 2016 Q3 ($900). The Las Vegas average asking rent is now 8.9 percent higher than it’s peak in 2008 ($878). The average asking rent is also 29.0 percent higher than it’s low in 2013 ($741). The Las Vegas apartment market vacancy rate decreased slightly to 7.4 percent. This represents a 0.4 percentage point decrease since the previous quarter and a 0.3 percentage point decrease since 2016 Q2. The vacancy rate has been between 7 to 8 percent for the past six quarters. The vacancy rate is now 3.6 percentage points lower than it’s peak in 2009 Q3 (10.96%), but 2.9 percentage points higher than it’s low in 2006 Q1 (4.5%).
38 zip codes saw a quarterly increase in average asking rents while 13 zip codes saw a quarterly decrease in average asking rents. Average apartment rents now range from $675 a month, in the 89104 zip code, to $1,538 a month, in the 89138 zip code. The 89131 zip code, in the northwestern region, saw an 18 percent increase in asking rents – the largest increase of any zip code this quarter. The 89129 zip code, also in the northwestern region, also saw a considerable quarterly increase in asking rents with a 6.6 percent increase. The eastern region also had multiple zip codes with significant quarterly increases in asking rents. The 89122 and 89086 zip codes both saw increases in average asking rents of 6.8 percent. The southern region saw the most significant decreases in average asking rents this quarter. The 89183 and 89123, which border each other in the southern region, saw the largest decreases in average asking rents this quarter of any zip code. The 89183 zip code experienced a 4.3 percent quarterly decrease and the 89123 zip code experienced a 3.6 percent decrease. The 89109 zip code, which saw a considerable increase last quarter, saw the third largest decrease this quarter with a 3.5 percent decrease. Only five zip codes have average asking rents that are down on a year over year basis. The 89109 zip code saw the largest year over year decrease in average asking rent with a 6.2 percent ($44) decrease. The 89147 zip code, in the western region, experienced the largest year over year growth in asking rents with a 12 percent increase.
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By Vivek Sah, Ph.D. and Betty Campbell | The Lied Institute for Real Estate Studies Lee Business School | Thursday, October 19, 2017
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