As America goes, so goes Vegas. Vegas was roaring back again however, the pandemic landed a nasty blow to the economy.
The exodus from California is helping out and as the economy revives this year, we’ll see Las Vegas rents and home prices rise. Right now in the US, home prices are rising faster than rents.
For 2021, Las Vegas and Henderson NV may be two of the best cities for buying rental property. Homes and apartments are still reasonably priced and rental yields are growing.
Check out our rental market report for comparisons to other US cities. The ante to invest in San Francisco, San Jose, San Diego, Miami, Toronto, or New York real estate makes Las Vegas a more sound possibility. And you may like the upside for positive cash flow and higher rental yields too.
The Recession is Finally Over
The recession hit gaming-focused cities such as Las Vegas and Reno badly after 2008 and the pandemic has been miserable. However, the future looks a lot brighter as Americans will likely enjoy an adventure to holiday destinations such as Disneyland, National Parks, and most importantly, to Vegas Casinos.
The development of Las Vegas main strip the last ten years is phenomenal and can actually attract IT businesses who are evading high tax regions. More companies may explore moving or allow their employees to work remotely in states such as Nevada. The cost savings are a real factor for companies.
There are a lot of considerations when weighing investment options in rental property, however measure these major factors below regarding the Las Vegas market.
Positives for Las Vegas Rental Sector
- decreasing unemployment and rising wages when the pandemic eases
- growing economy with tourism growing (39 million visitors in 2017)
- 2% population growth
- insufficient supply of single or multifamily housing
- lower property values
Las Vegas Rental Market Statistics 2018
- Las Vegas rental vacancy rates in Las Vegas? 3.2%, 6th lowest in the U.S.
- Median residential rent in Las Vegas? $990/month.
- Population of Las Vegas? 632 Million in city, 2.2 million in Metro region.
- Percentage of renters in Las Vegas? 48%.
- Average per capita income: $26,000
- Las Vegas’s unemployment rate? 5.5%.
- Tourism volume: there were 39 million visitors in 2017
- North Las Vegas has the 5th highest increase in renter growth (38%)
As long as the US economy grows through 2021, the outlook for the Las Vegas/Henderson markets is positive.
Half of the jobs in Vegas come from tourism and gaming related activities. The city’s fame as a tourist destination ensures high demand for rental units.
Population growth is expected to increase 45,350 people, or 2.1% yearly and that will support the rental property market.
Apartment rents and property prices were increasing fast year over year, however they seem to have flattened out recently. For rental property investors, it begs the question of whether this is just a lull before property values and rents begin a faster ascent.
“single family home prices held steady at $290,000… up 11.5% from $260,000 in July of 2017. The median price of local condos and townhomes sold in July was $166,000, down slightly from June, but up 20.3 percent from the same time last year.” from GLVAR report.
It hasn’t been one of the top destinations for investment money and new housing construction, however it may now be Las Vegas’ turn to shine. The local economy is growing at a 3.5% to 3.9% clip according to one source.
Las Vegas is becoming more diversified and a 3.7% growth in gaming revenues should help to build a broader economic base. It is a city of renters and wages are climbing. Construction is on the rise too at 10% this year and 9% in 2019. That spells opportunity for investors and property managers.
According to a report in Las Vegas Review Journal, property investors also bought 105 local apartment complexes in 2017 for around $2.7 billion in total. That’s compared to 31 apartment complexes for $346 million in 2011.
Avg Rent 1 Bdrm Avg Rent 2 Bdrm Avg Rent 3 Bdrm
$921 $1141 $1200
Monthly Gain Yearly Gain
Las Vegas Neighborhoods with Highest Rents
Summerlin North, and Desert Hills has the highest rents by far with an average $1400 and $1300 per month respectively. The Lakes, Angel Park, Lindell, Nex, Chatham Hills, Antelope, Astoria at Town Center, Aventine-Tramonti, Cascade and Centennial Heights have average monthly rents of about $1160.
The sunny, dry south is a big attraction for retirees and others in the cold weather states who have the income to pay higher rental prices. Check out our tips on finding positive cash flow properties and how to grow rental yields.
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See also: Property Management for Realtors | California Housing Market | San Jose Housing Market | Cloud Property Management Software | Positive Cash Flow Properties | Best type of Rental Property? | UK Housing Market | Australia Housing Market 2019 | Toronto Housing Market | Toronto Condo Prices | Multifamily Housing | Los Angeles Rent Prices | Online Rent Payment | HOA Management Software | San Francisco Apartment Prices | New York Apartment Prices | Housing Market | Apartment Rent Prices | Best US Cities for Rental Property | Grow Rental Property Yield
Originally published at blog.managecasa.com.