There are too many vacant apartments in Vegas, Last year the average rents were $750/mn. We are expecting average rents to increase to $800/mn. Apartment communities are waiving moving in security deposits, giving free months, etc. Why does this matter? If you are a landlord and have a condo avialable it could make renting out more difficult. This is not likely to affect single family home owners rental pricing. The issue here is supply and demand...Vegas started overbuilding apartment complexes with the idea that we were growing at a 5,000 + person monthly pace.. and now that that is no longer true..WE HAVE TOO MANY APARTMENTS!!! and now they are competing with each other to their own demise.
More than 12,000 apartments are up for grabs right now, but the occupancy rate is 91 percent, the 43rd lowest for major cities according to a new national index.
So where are all these people that are getting foreclosed on going? Vegas population increased 30,000 last year, which is not alot, but at least it's something...I know.......
51% of all the closed transactions in the last 30 days were cash deals....So they were likely investors...and those investors are becoming landlords...Apartments / Condos then are not the ideal investment in Vegas currrently...Single Family homes are.. We have less than a 75 days supply of rental homes. Additionally, at the prices Vegas is selling for right now I would be surprised if you were not making positive cash flow..Really surprised....
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