Rent Increases in Las Vegas

from Condo Conversions

Las Vegas Real Estate

 

 

Las Vegas has typically been known for its low cost of living. You used to be able to come for an inexpensive room and get food for a relatively low price. Now rooms are hundreds of dollars and your average buffet for a family of four is almost as much as a week's groceries in many of the casinos if you're coming for the weekend. Those of us that live here in the entertainment capital of the world are feeling the pinch in the cost of housing.

According to a Las Vegas Sun article by Jennifer Shubinski, "About one out of four Las Vegans lives in an apartment. There are about 165,000 occupied apartments housing an estimated 400,000 people." As you may have heard, condo conversions are a hot item in Las Vegas these days. What apartment complexes we do have are being bought and converted to condos. These condo conversions are the only affordable means of home ownership to many people.

Yesterday I was looking over our local MLS for apartment complexes having 5 or more units, less than 20 results came up. With so many people moving to Las Vegas, the rents are likely to increase because there just isn't much supply out there. For you investors, this segment of local real estate has become quite an investment market. Fewer and fewer apartments will be available to rent, especially compared to the increasing number of people who are looking for them to rent.

According to Ms Shubinski's article, vacancies have been falling and rents have been increasing. An average rent of $768 per month at the end of 2003 has risen to $805 at the end of 2004. Back in the 90's when I was attending college at UNLV, I rented a pretty nice apartment for under $500 per month.

Much of this increase in rental rates is due to our population growth. Shubinski reports that Las Vegas is currently leading the nation in job growth at 5.3%, while the nationwide rate is 1.7%. Just as it was difficult to get a home in the summer of 2004 without placing yourself on several waiting lists, it's likely that apartments will be facing the same scenario.

"It is estimated that fewer than 4,000 new apartment units will be completed this year, down from an average of about 7,000 units a year for the last few years." One of the reasons is a lack of good locations. I've heard many clients say that condo conversions aren't a good value, but I strongly disagree. Many of these conversions come with many upgrades and can be in great locations. The question I ask most is, "Would you rather be renting and paying someone else's mortgage?" It's the only option for some people, and I'm glad it's there for them.

For information about purchasing a condo conversion unit, please use the contact form and a Realtor will assist you.

Shubinski, Jennifer. "Complex Problem." Las Vegas Sun 13 March 2005: 1D+.