With a barrage of buyers seeking a small number of listings, the Las Vegas real estate market is accelerating at a rapid pace.
But on the other side of the valley, buyers aren’t the only ones facing higher prices and less choice.
Southern Nevada rental prices are rising at one of the fastest rates in the country, according to a new report, and real estate professionals say demand is fierce and inventories are minimal.
âThis is truly unprecedented,â said Brian Hartsell, owner of Key Property Management.
Rental home prices in the Las Vegas area jumped 11.3% year-over-year in April, at a typical rate of $ 1,460 per month, according to a report this week from the Zillow list site.
The valley’s rental growth was the fourth highest among the 50 metropolitan areas listed in the report, behind Memphis, Tennessee (11.8%), Phoenix (13.4%) and Riverside, California (14.9%) . Nationally, prices have risen 3% in the past year, according to Zillow, whose report covers all types of rental housing.
Like other industries, the Las Vegas rental market has faced turmoil and questions after the outbreak of the coronavirus pandemic. Many tenants have used unemployment benefits, stimulus funds or other programs to pay their rent amid huge job losses, and landlords have faced increased competition from the tenant. selling market as lower mortgage rates fuel a home buying frenzy.
But since people work from home without having to travel, and sellers who have cashed in on the buying frenzy need housing until their new home is ready, many people are looking for a home. rental.
Audri Schultz, rental coordinator with property management company Shelter Realty, said within an hour of listing a home, 15 agents call to show it to someone or to complete a rental application.
âPeople are desperate,â she said. âThey don’t look at them first. They apply in invisible sight. “
Schultz also said at least 50 percent of its landlord customers are increasing their rents now, up from perhaps 20 percent at some point before the pandemic.
The low inventory and the high demand make it more and more difficult to find a place. Landlords weren’t worried about their tenants moving out, Schultz said, unlike in the past where they worried about losing a tenant and how long the house would be empty before someone moved in.
âThere is no more worry now,â she said. “Absolutely none.”
Hartsell, of Key Property, said the supply of rentals available in the valley was the lowest he had seen in his 20-year career. As seen in a research by the region’s main listing service on Thursday morning, only around 990 units were available for rent, he said.
Not all rentals fit into this database, but a “comfortable” market would have about 5,000 units available, Hartsell said.
‘The demand is incredible’
The government-ordered freeze on evictions – aimed at keeping people at home amid the pandemic and spike in unemployment caused by the epidemic – likely reduced the number of rental housing that might have become available over the course of the year. past year.
But as Hartsell noted, Las Vegas is also seeing an influx of people from more expensive markets who come here to work from home or to retire.
Landlords know their tenants don’t have many options if they want to move out, which is helping fuel rent increases, he said.
Robert Broad, senior vice president of development for the Western United States at American Homes 4 Rent, a dominant homeowner in Southern Nevada and other markets, said his company has more than a dozen Rental housing lots at various stages of development in the Las Vegas area. .
Most of his houses in the valley have a signed tenant in place before the new location is ready to move in, he said.
âThis is not the experience of the past,â he said. âThe demand is incredible.â