Residential Investment Properties

Rental Rates

If you are looking to buy an investment property, you will be glad to know that rent rates are going up. The average apartment rental rate for Las Vegas was up 6% as of March 2006, to $834 a month. The average rent on residential houses is a bit harder to calculate but is believed to be around $1200-$1500 a month.

One of the big trends shaping the Las Vegas real estate market as a whole is the conversion of apartment complexes to condominiums. While condo conversions supply the need for affordable housing to buy, they diminish affordable housing to rent. It is believed that condo conversions will make up 17% of the Las Vegas residential market by 2007. While it is difficult to know exactly how this will affect the market in the future, presently the results are as follows:

  1. Limited availability of affordable rental property. Because so many apartment complexes are being converted, the number of available units for rent has plummeted. The average occupancy rate for apartment complexes is an astounding 97%, an apartment owner's dream.
  2. Limited availability has resulted in an increase of rent rates; supply and demand is at work.
  3. Limited availability in apartment complexes has resulted in renters having to go to single family residences in order to find a place to live. The inventory of single family residential homes to rent is decreasing.
  4. Limited availability in single family residential homes to rent has resulted in increased rent rates, supply and demand at work again.

The Las Vegas real estate is continually changing. The objective as an investor is to find oneself on the receiving end of the good that the market has to offer.

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