Market Conditions
Las Vegas Rental Market Conditons
By Al Tamura, Broker

Las Vegas Rental Homes '06

10/10/06  The Las Vegas rental home market is changing for the worse as homes once listed for sale are now becoming rentals.  This flood of unsold homes is depressing the rental prices in October.

The charts show that beginning in February, the number of homes listed for rent and the homes rented were almost equal.  This pattern continued for several months where all the homes listed for rent, got rented.  The demand and the supply of homes was almost equal.  This started to drive the rental price higher and as of September, the rental prices are at its peak. 

Las Vegas Rental Prices '06

However, what the charts don't show is that it is getting very difficult to rent houses.  There are more homes listed for rent than are renting and these rentals are starting to stack up.  As more unsold homes come on into the rental market and remain unrented, we can expect to see the rental prices fall.  Landlords are already dropping rental prices to give incentives to tenants.  We expect this trend to continue as long as the sales market remains soft.  Additionally, as we drift into the winter holiday season we can expect to see a traditional slowdown in tenant activity.