Las Vegas Housing Market Update - January 2023

Here are the key takeaways for any real estate investor in the current market:

A) Rent growth, both month over month and year over year, have flatlined. With less than a percentage point of difference, it is unlikely that rent increases from both turnover of 1-year tenants and lease renewals will be possible. For owners who want to increase the rent they are receiving on their properties, they are likely going to need to make upgrades that would justify a rent increase. This can include new flooring, updated appliances, and more. Check out one of our previous blogs on ways to improve the attractiveness of rentals for more information: 5 Things That Will Make Your Rental More Attractive to Tenants

B) Although inventory is decreasing, it is likely that there will be a large influx of first-time rental property owners, as increased interest rates and a slow real estate market have forced some homeowners to list their properties for rent to cover their bottom line. These first-time entrants to the property management market will cause increased competition in an already crowded environment. With prospective tenants having so much choice and freedom in finding a new home, it is important to make sure you have a property manager who is able to drive traffic and attention to your investment properties.

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.