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Volume 5, 1st Quarter, 2014

Lied Institute Report on Apartment Market Trends


featuring data from the Center for Business and Economic Research

Apartment Market Trends in 1st Quarter 2014


Las Vegas apartment market held quarterly increases in both vacancies and asking rents, according to
data from our apartment survey that is collected by the Center of Business and Economic Research
(CBER). By the end of the first quarter 2014, about 1,600 more units were left vacant, pushing the
vacancy rate to 9.7 percent. Many of these new vacant units reside in areas surrounding Downtown and
the Sam Boyd Stadium. Vacancy increases in those areas were enough to offset occupancy improvements
in the Mountains Edge community and some parts of Summerlin. Despite this, the Valley-wide vacancy
rate did not surpass last years rate when there were an estimated 16,536 vacant apartment units on the
market. This is good news because the annual trend is still downward sloping.
Figure 1: Apartment Vacancy Rates in Las Vegas*

89143

89087

89085

89165

89131

89166

Vacancy Q1 2014

89086

89084

No Data

89149
89081

89031

89130

0.01 - 6.00
89115

89129
89032
89134
89138

89128

89156
10.01 - 12.00

89106

89144
89145

8.001 - 10.00

89030

89108

89107

89110

89101
89104

89117

89146 89102

89147

89103

89135

89161
89118
89148

89109
89169

14.01 - 20.0

89142

89122
89119

89120
89014

89004
89139

12.01 - 14.00

89121

89113

89011

89015

89074

89123

89012

89178
89183
89179

6.01 - 8.00

89141

89005
89044

*Figure based on CBER Apartment Survey

89002
89052

Page 2

Apartment Market Trends

The average rental rate, meanwhile, went up by 7 dollars to $765 per month since last quarter. The most
notable growth occurred in communities near high-end master plan communities. There were increases in
northern zip codes 89149, 89084 and 89130. Moreover, apartments in the Henderson zip code 89074
raised rents high enough for them to enter the second largest average rent tier ($950-1049) in Las Vegas.
Around Downtown, where communities held more vacant units, apartment complexes kept their rental
rates low, below $749 per month. Slightly offsetting growth were changes in South West Las Vegas.
Apartments in zip codes 89147, 89148, and 89113 reduced their average rates from the $950-1049 tier in
2013 Q4 to the $850-949 tier in 2014 Q1.
Figure 2: Apartment Rental Rates in Las Vegas*

89143

89087

89085

89165

89131

89166

Rent Q1 2014

89086

89084

No Data

89149
89081

89031

89130

1 - 649
89115

89129
89032
89134
89138

89128

89156
850 - 949

89106

89144
89145

750 - 849

89030

89108

89107

89110

89101
89104

89117

89146 89102

89147

89103

89135

89161
89118
89148

89109
89169

Geater than 1050

89142

89122
89119

89120
89014

89004
89139

950 - 1049

89121

89113

89011

89015

89074

89123

89012

89178
89183
89179

650 - 749

89141

89002
89052
89005

89044

*Figure based on CBER Apartment Survey

For the most part, this quarters average rent increase in the Las Vegas Valley represents the fourth
consecutive quarterly increase. This is an encouraging trend for landlords after the 15.7 percent rent
depreciation from the markets peak (2007 Q4) to valley (2012 Q1) that came in the aftermath of the
Great Recession. Preferable market conditions would involve coupling rent appreciation with waning
vacancies, which are wavering occupancy currently. At least, rent appreciation is being realized by all
apartment types surveyed here.

Apartment Market Trends

Page 3

Among them, furnished studio units enjoyed the highest quarterly increase (4.8 percent) followed by
furnished one bedroom units (2.5 percent) and furnished two bedroom units with two baths (1.9
percent). Although units that have more bedrooms and bathrooms own premiums over smaller units,
they tend to sustain complementary movements. In other words, if the average rent for three bedroom
units increased, it is likely that the average rent also appreciated for smaller units. By the end of the first
quarter 2014, among unfurnished units, three bedroom units held the highest average asking rent ($959)
above two bedroom units with two baths ($815) and one bedroom units ($670).
Figure 3
Figure 4
Average Rent
720 740 760 780 800 820 840 860 880

Las Vegas Metro Apartment Rental Rates

Las Vegas Metro Rent by Apartment Type

1,000

$876,2007Q4

959

Average Rent
400
600 800

815
670
524

200

$765,2014Q1

15.68%Drop

2006

2007

2008 2009 2010 2011 2012 2013


Date (Quarter 1, 2006 Quarter 1, 2014)

2014

Studio
Two Bed, One Bath
Three Bed

2015

Figure 5

Figure 6

Three Month Moving Averages

10.96%,2009 Q3

Rental Frequency
1500
2000
2500

Average Vacancy Rate (%)


6.0
8.0
10.0

3000

Las Vegas Metro Apartment Vacancy Rates

12.0

Las Vegas MLS Leased Homes

2010

2011
2012
2013
Date (August 2008 March 2014)
All Homes

SingleFamiliy Homes

Source: Greater Las Vegas Association of Realtors MLS

9.7%,2014 Q1

4.53%,2006 Q1

2014
4.0

2009

One Bed
Two Bed, Two Bath
All Types

Note: Subfields are for unfurnished apartments.


Source: CBER Apartment Survey

Source: CBER Apartment Survey

1000

765

689

2006

2007

2008 2009 2010 2011 2012 2013


Date (Quarter 1, 2006 Quarter 1, 2014)

2014

2015

Source: CBER Apartment Survey

Apartment complexes, to a certain extent, compete with individually owned units, which mostly consist
of single family homes and condominiums. MLS rental leases, a proxy for this competition, spiked this
quarter reaching a three month moving average of 3,094 leases in March 2014. This, in part, explains the
increase in vacancies when assuming that some portion of those MLS leases were signed by potential
apartment tenants. Nevertheless, economic conditions, more than anything will influence the apartment
market, especially as residents find better jobs, earn higher income, and recover financially.
Luis A. Lopez, Data Analyst

Page 4

Apartment Market Trends


Table 1: Apartment Rental and Vacancy Rates by Zip Code

ZIP CODE
89002
89005
89011
89012
89014
89015
89027
89029
89030
89031
89032
89052
89074
89081
89084
89086
89101
89102
89103
89104
89105
89106
89107
89108
89109
89110
89113
89115
89117
89118
89119
89120
89121
89122
89123
89128
89129
89130
89131
89135
89139
89141
89142
89144
89145
89146
89147
89148
89149
89156
89166
89169
89178
89183
METRO LV

UNIT RATES
Studio
F
U
.
.
.
.
.
.
.
.
.
595
.
.
379
.
.
.
.
557
.
.
.
607
.
.
.
.
.
.
.
.
.
.
536 476
480 516
.
564
395 497
.
.
659 425
.
516
.
496
499 549
.
.
.
.
515 437
.
.
.
563
556 523
.
629
.
528
636 463
.
551
.
.
.
687
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
360
.
.
.
.
.
.
.
.
.
.
663 486
.
.
.
.
578 524

1 Bed
F
U
.
695
.
650
.
778
.
758
.
693
.
617
.
548
.
432
.
564
.
.
.
686
.
822
.
814
.
679
.
793
.
696
611
521
495
560
.
636
450
533
.
494
759
527
.
560
.
657
625
639
.
551
.
815
699
554
.
776
.
713
631
626
.
639
837
589
676
664
.
791
.
701
.
697
.
631
.
700
.
934
.
881
.
1047
.
580
.
915
.
852
.
664
.
792
.
848
.
780
.
601
.
787
762
541
.
905
.
814
691
670

2 Bed/1 Bath
F
U
.
760
.
.
.
902
.
810
.
775
.
676
.
512
.
466
.
580
.
.
.
.
.
1009
.
.
.
.
.
920
.
795
.
595
.
639
.
694
.
617
.
.
.
556
.
593
.
630
.
568
.
614
.
.
.
589
.
900
.
722
725
616
.
688
.
640
956
861
.
1160
.
.
.
925
.
.
.
.
.
.
.
910
.
948
.
575
.
.
.
810
.
604
.
850
.
.
.
775
.
.
.
892
.
613
.
955
.
835
867
689

AVERAGE RATES
2 Bed/2 Bath
F
U
.
915
.
750
.
968
.
937
.
821
.
736
.
738
.
475
.
686
.
751
.
814
.
979
.
987
.
860
.
1026
.
868
810
643
.
724
.
767
.
644
.
593
.
636
.
691
.
770
.
842
.
674
.
940
.
652
.
901
.
880
.
771
.
757
.
711
.
806
.
955
.
804
825
826
.
747
.
827
.
1181
.
1017
.
1228
.
678
.
1080
.
1066
.
785
.
916
.
971
.
979
.
693
.
971
895
677
.
1110
.
930
840
815

3 Bed
F
U
. 1078
.
.
. 1030
. 1110
.
991
.
857
.
.
.
584
.
784
.
837
.
855
. 1177
. 1150
. 1007
. 1128
. 1022
.
713
.
818
.
877
.
737
.
.
.
783
.
875
.
896
.
750
.
802
. 1251
.
786
. 1050
. 1003
.
887
.
935
.
804
.
939
. 1107
.
980
. 1048
.
945
. 1028
. 1340
. 1203
. 1409
.
764
. 1262
. 1220
.
955
. 1023
. 1038
. 1202
.
940
. 1143
.
906
.
.
. 1050
.
959

Rent
804
700
915
907
811
715
562
490
662
794
766
970
951
857
977
825
561
646
713
592
544
624
654
739
701
660
925
652
888
802
695
746
674
761
898
831
812
774
852
1133
1018
1217
658
1122
1037
787
902
944
958
683
922
648
997
913
765

Vacancy
7.7%
17.6%
10.4%
9.8%
9.0%
11.9%
19.3%
8.3%
13.0%
9.1%
11.4%
9.5%
9.3%
13.6%
9.8%
10.5%
11.1%
8.7%
8.5%
10.0%
2.5%
10.6%
8.4%
10.1%
11.4%
12.4%
5.1%
9.8%
8.4%
8.1%
10.3%
9.4%
10.3%
9.6%
9.2%
9.1%
8.5%
7.1%
9.2%
7.0%
9.1%
7.9%
11.2%
7.5%
8.8%
9.7%
8.4%
10.2%
9.6%
11.9%
9.0%
9.6%
7.2%
9.3%
9.7%

UNITS
Total Units
785
282
1061
2421
5789
2480
312
2202
2197
321
2644
2686
2689
1573
1008
1095
6492
7958
8906
5532
80
2749
2537
7949
2484
3597
585
5526
7796
1815
22081
2123
6393
4050
4684
2582
2548
1040
348
1459
1386
340
1454
732
614
3337
3216
1788
1306
728
1484
7575
539
4170
169528

Vacant Units
61
50
110
238
523
296
60
183
286
29
302
254
250
214
99
115
719
695
757
555
2
292
214
806
282
447
30
543
655
147
2283
200
659
389
429
236
216
74
32
102
126
27
162
55
54
323
269
183
125
87
134
726
39
386
16417

" . " Number of observations insufficient for statistical purposes. "F" stands for Furnished and "U" stands for Unfurnished. Source: CBER Apartment Survey

Ap
partment M
Market Tren
nds

P
Page 5

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C
Contact Info
ormation
Luis A. L
Lopez
Data An
nalyst
(702) 895
53223
L
Luis.Lopez@
@unlv.edu

4505 S. Maaryland Parrkway, Box 4


456025
Las Vegas, NV 8
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