LV apartment rental rates decline in third quarter

Wed, Oct 21, 2009 (1:19 p.m.)

Apartment rental rates in the Las Vegas area fell in the third quarter as unemployment rose, a report issued Wednesday shows.

RealFacts, a company in Novato, Calif., that tracks rental rates around the country, said the average asking price for apartments in the Las Vegas area in the quarter was $837, down 2.1 percent from $855 in the second quarter and down 5.7 percent from $887 one year ago.

With unemployment in Clark County now at 13.9 percent, the local apartment occupancy rate of 91.1 percent is down 2.6 percentage points from 93.7 percent one year ago, according toRealFacts data.

"Renters are in a great position to secure favorable terms for rental property and landlords are offering good value for their rental properties. The conditions in the rental market reflect people’s attitude throughout the country. People are tightening their belts by reducing their spending and consumer debt and increasing their savings," RealFacts said in its report.

Nationally, the average third-quarter rental rate of $965 was down from $968 in the second quarter and $1,002 one year ago, RealFacts said.

In the Las Vegas area, average prices in the third quarter were $819 in Las Vegas, $872 in North Las Vegas and $968 in Henderson.

Average prices locally ranged from $546 for studios to $1,047 for three-bedrooms.

The pain experienced for Las Vegas-area apartment owners was illustrated in the second quarter financial results of Camden Property Trust of Houston, which operates 29 Southern Nevada apartment complexes with 8,016 units under the Camden and Oasis brands.

Camden reported that for 2,889 of those units in the Las Vegas and Henderson areas, which were stabilized and owned as of January 2008, rents and occupancy rates fell during the first half of 2009.

Camden reported the average rent for those units of $825 through June 30 was down 4.7 percent from $866 in the same period of 2008; while occupancy of 93.5 percent was down from 94.2 percent.

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