Las Vegas is becoming a hot city for the rental market, and no, we aren’t just referring to the 112 degree summer days. With a thriving economy, a push for innovation and new business, and a high percentage of renters living in the city, Las Vegas provides real estate investors with the potential for phenomenal rental property opportunities.
Over the past three years, rent prices have been slowly, but steadily trending upwards. By aggregating data from the average rental prices for three-bedroom rentals, you can see that steadily the cost of rent has been increasing over the past three years in the chart below. While prices for rent are trending up across the nation, percentage-wise the jump is higher in Las Vegas.
Rental vacancy rates in Las Vegas are at 5.1%, beneath the nation’s average. This means that not only are landlords being provided the opportunity for rent price increases, the demand for rental properties is higher than in many cities across the US.
The price of rent is going up at the same time that the cost of buying a home is rising. According to Zillow’s data, Las Vegas home values have risen 10.6% over the past year. The prediction is that this trend will continue, with upward growth of 1.4% within the next year. For landlords who have already invested in the market, this is good news. For those who are looking to invest, costs could continue to rise.
As the data below demonstrates, the economy in Las Vegas is strong and continues to show improvement in job growth and business establishment.
Las Vegas is a varied city with diverse neighborhoods. This is reflected in the large difference in rental pricing depending on the part of the city a property is located in. The chart below provides the average pricing for rentals in the most popular Las Vegas neighborhoods.