Las Vegas Housing Market Update - June 2022
Inventory Crosses 2,000 for the First Time in 2 Years!
Although the rental and real estate markets are continuing to strongly favor landlords/sellers, for the first time in over 2 years, the market is showing signs of slowing down. June rental inventory numbers have reached levels that have not been seen in over two years, especially during the summer. In fact, the last time there were comparable inventory numbers was during the market slowdown in the spring of 2020.
In June of 2022, 2,065 rental properties were leased across the Las Vegas Valley. This is a 13.8% increase in activity from June of 2021 (1,814 properties). The number of rental properties listed in June of 2022 was 1,814. This is a 136.5% increase from June of 2021 (767 properties). The median price of rental properties across the valley in June of 2022 was $2,050/mo. This represents a 14.3% increase over June of 2021 ($1,793/mo.). The average price of rental properties in June of 2022 was $2,216/mo. This is a 11.1% increase from June of 2021 ($1,995). Additionally, this is the first time the monthly median rent has decreased since July of 2018 and the first time the average median rent has decreased since July of 2020.
Here are the key takeaways for a real estate investor in the current market:
A) Substantial continued growth in inventory numbers will continue to shift the market in favor of renters. As more inventory becomes available, renters have more options, which leads to them becoming pickier in their choice of property. This "pickiness" will be seen as a decrease in the number of applicants properties see, along with increased days on market.
B) As rental rates plateau, this will reduce how aggressive landlords and property managers can be with rental rates, especially as we head into the later and slower parts of the year. Property owners who were able to secure new leases with sizeable increases this spring and summer were the luckiest, and will enjoy an increased return on their property as the market stabilizes.
While the numbers look good, every property is unique and needs a proper market analysis to determine what the current fair market rent would be. If you are a property owner or investor and have questions about where your property fits into the current rental market, please reach out to us in-person or via phone or email.
