Rental rates in Spring Valley, located in the southwest of the Las Vegas Valley, experienced a notable decline, marking the largest year-over-year drop in the area. According to Zumper, the average rent for a one-bedroom apartment in Spring Valley was $1,380 at the end of May, reflecting a 2.1% decrease from the previous year. However, rent increased by 2.2% from April to May.
The decline in rental rates is attributed to the introduction of new apartment complexes in Spring Valley. Crystal Chen from Zumper highlighted that the number of active listings increased by about 10% since 2023, helping to balance demand and reduce competition, thereby placing downward pressure on prices. Two-bedroom rental rates in Spring Valley also saw a decrease of 3.7% year-over-year, settling at $1,550, and remained stable from April to May.
A CoStar report indicated that the Las Vegas Valley has recently seen an influx of apartment units, with approximately 4,600 multifamily units added over the past year, increasing the total inventory to 193,129 units. This rise in supply has influenced rental trends in the area.
In contrast, Henderson remains the most expensive rental market in the valley. One-bedroom rates increased by 1.3% year-over-year to $1,570, while two-bedroom rates declined slightly by 0.6% to $1,770. Chen pointed out that the modest rental growth in Henderson reflects a flattening trend in the region’s rental market, with a seasonal uptick potentially influencing current rates.
On a national scale, the U.S. rental market is showing signs of softening. The median asking rent in May fell by 1% year-over-year to $1,633, according to a Redfin report. This decrease is part of a broader trend observed in 28 major metros, attributed to the high rate of apartment construction outpacing renter demand. This has resulted in many units remaining vacant, giving renters more negotiating power.
Cities like Austin and Minneapolis have seen significant rental declines, while Cincinnati, Ohio, experienced the most substantial increase at 7.4% year-over-year. Other cities such as Tampa, St. Louis, and Pittsburgh also saw rental increases. Additionally, Chicago, Memphis, and Washington, D.C., reached record-high rents.
