Las Vegas Housing Market Update - February 2023
Market Picks Up Slightly to Start the Year
At the end of February, rental market inventory was at 3,081 rental properties. This is the second month showing a continuous decrease in rental inventory. This kind of back to back decline has not been seen since March-May of 2021. This decreased inventory could be a good omen for the coming busy season of rentals (spring-summer). In February of 2023, 2,084 rental properties were leased across the Las Vegas Valley. This is an 15.8% increase from February of 2022 (1,799 properties). The number of rental properties listed in February of 2023 was 1,568. This is a 23.4% increase from February of 2022 (1,271 properties). The median price of rental properties across the valley in February of 2023 was $1,900/mo. The median price has remained unchanged at $1,900/mo. since December of 2022. The average price of rental properties in February of 2023 was $2,192/mo. This is a 3.7% increase from February of 2022 ($2,133).
Here are the key takeaways for any real estate investor in the current market:
A) While inventory continues to decrease, and listing activity went down by over 10% month-over-month, we are continuing to see long days on market across the valley. For example, in the month of February, the average days on market for the entire Las Vegas metropolitan area was 40 days. This is nearly 6 weeks of vacancy for owners, which affects the ROI of properties. This means that property managers and landlords are still having to be conservative on setting new rent amount for turnover and lease renewals.
B) As government-funded housing assistance programs wind down, and the courts grant more and more evictions, there will be an influx of tenants looking for rentals with evictions on their records. This means that there will be an increase in the number of tenants applying for rentals with falsified records. It is important that when screening tenants, all information is verified to ensure that you are putting a fully qualified tenant into your property. Not fully vetting a tenant can result in thousands of dollars' worth of damage to a property during their tenancy and at move out.
No matter the market conditions, every property is unique and needs a proper market analysis to determine what the current fair market rent would be. If you have questions about where your property fits into the current rental market, please reach out to us.
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