houses las vegas

(FOX5) 

LAS VEGAS (FOX5) -- There's no end in sight for the rise of apartment costs in the Las Vegas Valley for 2020, experts say. Rent prices continue to rise as the number of move in-ready spaces goes down. 

It may seem like there's more than enough to go around, but experts told FOX5 it's far from that. As quickly as they're built, the spaces are rented.

A new report from the Nevada State Apartment Association showed that the supply of empty apartments has been cut in half over the past decade. 

The average price of rent is up almost 5% since this time last year.

Realtor Steve Hawks said he's heard that story countless times. He helps renters become buyers.

"The locals are being pushed out by people coming in from all over the country with a big chunk of change," he said. And new apartments are being built "everywhere."

More than 12,000 new apartments have been built since 2015 with another 3,800 on the way. For the first time in years, new builds are filling in areas closer to the Las Vegas Strip.

"There’s a lot of available land that they can’t put single family houses there, they can’t put high rises there, so apartments are a great bet and a huge win for developers," Hawks said. 

What's a win for them is causing some renters to lose sleep. And experts say 2020 won't be the year we see those rent trends reversing.

Hawks added that there aren't enough affordable, single-family homes being built, and that's why more people are forced to rent. Many apartments in Southern Nevada are owned by big companies with a lot of money, he said, so they don't need to drop their rent prices to fill their buildings.

Copyright 2019 KVVU (KVVU Broadcasting Corporation). All rights reserved

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(5) comments

realtyvegas

The Lack of land, not greed is the reason rents are going up. Raising prices of homes and rents are always and forever at the mercy of Supply and Demand. As of the end of 2016 84.9% of Nevada is owned by the Federal Government. this has stifled the supply of land making what land there is available quite expensive, which means that the homes that are built on that land must also be sold for more. However, unlike the post which suggested that you have to put 20% down in order to buy a home, the ease of obtaining a loan is actually quite high for a number of reasons. First, interest rates are at their lowest since the 1950s with the exception of a slightly lower rate for a short time in 2012, Back in the early 80s I personally closed a loan on my home at 18 1/2%. Lower rates mean more people can afford to purchase. Additionally, there are multiple loan programs whereby grants (read that free money) for a down payment of up to 5% can be given to a prospective home buyer. With FHA offering loans with only 3.5% down payment, it means you could get in with no money down and have some of your closing costs paid for as well. Add to this that perfect credit is not a requirement, and while homes are more expensive than they were in 2012, your house payment is usually less than it would cost to pay rent on that same home. Rents are abnormally high because vacancy rates are abnormally low; in some areas less than 4%. Homes are going up in price, but fortunately, not at an insane rate. So, now is a great time to buy.[thumbup]

Pepcon Survivor 86

Another thing that’s really hurting people is the cost! Not the shortage. $1,800 a month for an apartment and $2,400 a month for a house payment. Second who has $60,000 to $100,000 to put down for the 20% requirement for a house? With an apartment you never get ahead and a house you get a very high house payment. Also we have old houses that are valued at the same cost as a new house and that’s not correct plus there are plenty of apartments but there in really bad areas of Henderson, Las Vegas, and North Las Vegas that most and very few sane people would even consider renting. I’d say we are on path to becoming like Los Angeles.

MicheleR58

No chit... it doesn't help that we have those from California escaping to places like Vegas, Texas, or other states. They are driving UP cost. And now, we have the new stadium for the Las Vegas Raiders. That drove costs up too. We are moving out of Vegas for that reason and because Vegas is no longer what it used to be. Its gotten greedy and impersonal.

Ablewood

Wait! You said Californians are moving to places like Las Vegas and driving up cost and that you're moving out of Vegas for that reason. You are moving to another place for the same reason people are moving out of California. What does that say about you? It says, you are moving to a place where YOU will drive up the cost and unless you make more money, YOU will move again and do exactly what your accusing others of doing. Over, and over, and over again.

Toryin

Yes. You are right!! We are one of those (in)sane people renting up in north vegas. We pay $1020 for a 2 bed 2 bathroom apartment in a gated community right next to Nellis airbase. The place is a food desert and there is no proper grocery store within walking distance unless you have the privilege to shop on base at the commissary. We can't afford to buy a house but we thought about getting a manufactured home to escape the rent cycle where u pay for decades and still own nothing.

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