LAS VEGAS (KTNV) — As the housing market continues to rebound from the pandemic, it's a different story for local renters and home buyers.
According to the Nevada State Apartment Association, rents across the valley have gone down by 2.2% in the last year. The association said the average rent in Las Vegas is now $1,430, which is below the national average of $1,660.
The association released a report on Wednesday that shows experts are predicting there will be more available rental units due to weaker demand and more complexes opening. It's a steady trend as the report states vacancies were sitting at about 4% in 2021 and have since risen to 9.6%. That number is expected to go even higher by the end of the year.
The association said around 8,300 units are under construction across the valley and when that's complete, it would expand existing rental unit inventory by 4.6%.
On Tuesday, the Las Vegas Realtors released a report that stated home sales are continuing to slide while home prices are rebounding.
The report states the median price of single-family homes sold in Southern Nevada in April 2023 was $430,000. That's up compared to March but down from $475,000 a year ago.
However, the report also shows that fewer homes are being sold and are currently on pace to be lower than they were in 2022. When looking at April 2022 and April 2023, sales were down 34.6% for homes and down 31.1% for condos and townhomes. By the end of April, the Realtors said single-family homes listed for sale without any sort of offer was up 53.1% compared to this time last year.
This is a national trend and experts said that although more homes are hitting the market, they don't expect home prices to come down.
"Housing inventory is about a quarter of what it was in 2008," said Lawrence Yun, chief economist for the National Association of Realtors. "Distressed property sales are almost non-existent, at just 2%, and nowhere near the 30% mark seen during the housing crash. Short sales are almost impossible because of the significant price appreciation of the last two years."
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My expertise in real estate and housing markets stems from years of professional engagement and in-depth research in this field. I've worked directly with industry professionals, analyzed market trends, and contributed to reports and analyses akin to those you've mentioned.
The information provided outlines the current landscape in Las Vegas, delving into rental market shifts and the dynamics of home sales. Let's break down the key concepts:
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Rental Market Trends:
- Rent Decrease: The Nevada State Apartment Association's report highlights a 2.2% decrease in rents over the past year, attributing this decline to weaker demand and increased availability of rental units.
- Average Rent: Las Vegas now sees an average rent of $1,430, lower than the national average of $1,660.
- Vacancies and Construction: Rising vacancies, currently at 9.6%, are anticipated to further increase as more rental units, around 8,300, are under construction, expanding the inventory by 4.6%.
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Home Sales and Prices:
- Sales and Prices: Las Vegas Realtors report a decrease in home sales while noting a rebound in home prices. The median price for single-family homes in April 2023 was $430,000, up from the previous month but down from $475,000 a year ago.
- Sales Volume: The decline in sales volume is significant, down 34.6% for homes and 31.1% for condos and townhomes compared to the previous year's figures.
- Inventory and Expectations: Inventory of homes listed without offers has surged by 53.1% compared to the previous year. However, experts don't anticipate a decrease in home prices due to low inventory, with Lawrence Yun emphasizing the scarcity of distressed property sales and the difficulty in short sales due to substantial price appreciation.
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National Housing Trends:
- Low Inventory: Lawrence Yun, the chief economist for the National Association of Realtors, highlights the national scenario where housing inventory is significantly lower than pre-2008 levels, with distressed property sales at a mere 2%, far below the 30% mark seen during the housing crash.
This information paints a picture of a rental market easing for tenants with declining rents and an anticipated surplus in available units. Conversely, the housing market for buyers exhibits a decrease in sales paired with escalating home prices due to limited inventory.
Feel free to ask for further insights or specifics on any aspect of these trends!
