This morning I received the Yardi Metrix Survey for July 2019. The Yardi Metrix compiles data nationwide on rental rate growth year over year, among other things.
The Las Vegas Multi Family market continues to see the fastest Year-over-Year (YOY) increase of rents. In July, Las Vegas saw an 8% YOY increase, followed by Phoenix at just over 7%. Sacramento, Charlotte and Austin rounded out the top five in the mid 4% range.
The national average was 3.4%, up 10 basis points from June. For some perspective the average rent in January 2019 was $1420. In July it was $1469, an increase of $49.
Focusing specifically on the Las Vegas area, it’s crazy how rents continue to climb. According to Rent Jungle, as of April 2019 average rent for Las Vegas was $1114, an increase of 11.49% YOY and a one month increase of $9 or 0.81%. This comes amid net absorption over 4,000 units with continued construction on the books. Vacancy has continued to decline, falling below 5% for the first time since the Great Recession. Growth is strongest along the I-215 corridor as I am sure you all have seen.
Why are these numbers important to you as a Realtor? Well, a simple calculation Agent App would show you, $1114 average payment on a FHA loan would get you roughly $172,475. On the flip side however, with rents continuing to climb, it should motivate renters to lock in low rates and consider buying a home. It is clear rents will continue to rise, vacancy will continue to fall and development will continue to fuel supply.