Rentership on the rise in Las Vegas valley as result of hot hous - FOX5 Vegas - KVVU

Rentership on the rise in Las Vegas valley as result of hot housing market

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Southern Nevada ranked third in the nation for the most house flips. (Mike Doria/FOX5) Southern Nevada ranked third in the nation for the most house flips. (Mike Doria/FOX5)
LAS VEGAS (FOX5) -

Las Vegas Valley realtors said now might be the perfect time to buy a home. While home prices are on the rise, home affordability for renters is at a record high.

According to a new study, renters across the country could afford to buy 64 percent of all the homes sold.

But realtors said the housing market is so hot in the Valley that people are being outbid and have to settle on renting until another home becomes available. 

According to Zillow, 47 percent of residents in Las Vegas are renters. That’s a 9 percent jump since 2006. Zillow experts said they have seen the rise in renters since the recession hit in 2008.

But the president of the Greater Las Vegas Association of Realtors said the increase is also the result of the booming housing market.

“We have less than 4,800 homes available,” GLVAR president Chris Bishop said. “A market our size should have 12,000 homes so there aren't a lot of options.”

When there aren’t a lot of options, people still need a place to live.

“When people are in the market and can't find a place to live, they turn to the alternative until they can get back in and find the right place,” Bishop said.

That’s exactly what happened to renter Alex Barnett, a business owner who used to rent downtown.

“I was downtown just for convenience,” Barnett said. “I worked downtown, then I got married and we wanted to start a family so we wanted to get a house together.”

But he found a lot of other families had the same idea. He was outbid or other buyers put in cash offers.

“We have Millennials, Gen X, Baby Boomers,” Bishop said. “The whole thing is you need a place to put your stuff, so if you're in a market and you see 10 or 12 other offers, there might be a better option for you to rent.”

But Barnett said this isn’t his long-term plan. He is renting to own in this hot housing market.

“Renting is easier, but we have professional sports teams, businesses moving here,” Barnett said. “It's going to get expensive, so I think if you can buy, buy now.”

The price of rent is also increasing in Las Vegas. The average monthly cost is $1,293, up nearly 4 percent in the last year.

Other cities seeing a jump in renters include Memphis, Tennessee and Honolulu, Hawaii.

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