Rents Rise
A report from Marcus & Millichap Real Estate Investment Brokerage found that apartment rents in the Las Vegas Valley are on the rise as vacancy rates remain at a low of 4%. Low vacancy rates, particularly in the Spring Valley and Henderson/Southeast areas, are giving owners the leverage they have needed to push rents higher.
Over 35,400 new jobs are expected to be created in the Las Vegas area in 2006 which follows a 57,000 new job gain in 2005. With area home prices still considered out of the reach of many individuals, the only affordable option, at the moment, for many is renting. However, this option may not remain very affordable if current supply levels do not increase.
Sale prices for rental properties have increased; and investor interest and activity remains high for A-type rental products. In fact, the Bentley Group is projecting a 6 to 10% rent growth in 2007.