LAS VEGAS – A report released this week by the Nevada State Apartment Association (NVSAA) shows a 10-year run of rent growth in Southern Nevada’s apartment market has ended.
The report, issued by the NVSAA based on data provided by CoStar, shows Southern Nevada apartment rents declining by 1.0% through the end of the fourth quarter of 2022 compared to one year earlier. Asking rents during the fourth quarter averaged $1,420 per month, remaining below the national average of $1,620 per month. That’s also down from third quarter asking rents of $1,451 per month.
“When 2022 came to a close, rents were going down in Southern Nevada, standing in stark contrast to December 2021, when rents were growing at an annual rate of more than 20%,” said new NVSAA Executive Director Robin Lee. “This slowdown represents one of the most abrupt declines in rent growth of any U.S. market.”
The NVSAA report projects that 2022’s record-setting inflation will continue to cool apartment demand, with the average vacancy rate during the fourth quarter of 2022 at 8.6%, its highest level since 2013.
As of the fourth quarter, about 9,300 local apartment units were under construction, which will expand existing apartment inventory by 5.2% once complete. The bulk of the new developments are in the Henderson and Summerlin areas.
This report is provided by the NVSAA based on data from CoStar, a leading provider of commercial real estate information.
About the NVSAA
The Nevada State Apartment Association is the voice of the multifamily housing industry in Nevada. The nonprofit organization provides a variety of services to its 1,057 community, property management and business partner members statewide, including legislative support, education and community outreach. NVSAA is committed to promoting and supporting the diversity, integrity and success of its members and their industry. For more information, visit www.NVSAA.org.
