Southern Nevada rental prices creep up as housing market shrinks - FOX5 Vegas - KVVU

Southern Nevada rental prices creep up as housing market shrinks

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Rental rates rose as options to buy homes became more scarce. (FOX5) Rental rates rose as options to buy homes became more scarce. (FOX5)
LAS VEGAS (FOX5) -

As it becomes more expensive to buy homes in Southern Nevada, rental rates have been creeping up also.

“I can’t understand why it keeps increasing I'm in the same unit and [the rent] goes up anyway,” renter Lynn Johnson said.

Johnson said she has lived in Las Vegas since 1999. In that time, she’s owned a home, sold it, and started renting an apartment in Henderson.

Johnson moved in to her apartment Dec. 2016. When she renewed her lease in July 2017, the rent was $30 more expensive.

“I asked the question ‘Why did it go up?’ I’m in the same apartment, nothing was added to my apartment, they didn’t donate furniture to my apartment,” Johnson said. “I can’t wrap my head around that piece.”

Housing experts said it’s all about supply and demand.

“Rent price increases are directly related to the amount of inventory on the market for homes for sale,” FOX5 legal analyst Bob Massi said.

It’s a trend popping up in the valley. As the number of houses for sale in valley shrinks, rental prices sky rocket.

“We don’t have a lot of homes on the market for sale, most people are renting and the rental properties raise the rent because they know since there is not a lot of inventory to buy homes people got to rent,” Massi said.

He said renting is often times the only option for many.

Even with contractors building new housing developments, most people can’t afford it, Massi said.

“The new homes that are being built are so expensive that people can’t qualify so they rent,” Massi said. “The rental market knows that.”

According to rentcafe.com, the average rent for an apartment in Las Vegas went up five percent since last year.

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