Las Vegas 2nd in nation for declining rental rates year over year, report says

Las Vegas Valley rents have declined 4 percent year over year in June, according to a new report from Redfin.

Las Vegas is second in the country for year-over-year rental declines as the average rate for a median rental sits at $1,478 a month, according to Redfin. Rates also dropped 1.4 percent from May to June of this year. Leading the country in asking rental rate declines is Austin, Texas, at 5.7 percent year over year.

Redfin chief economist Daryl Fairweather said the city’s slowing gaming and tourism sector is clearly starting to impact its rental market as well. The Las Vegas-area’s unemployment rate in May, 5.5 percent, was second highest among metro areas with at least 1 million people, lower than only Fresno, California, at 7.8 percent, according to the U.S. Bureau of Labor Statistics.

“The Las Vegas economy runs on people from all over the world coming to the city to spend in the tourism industry,” she said. “That may be slowing down due to tariffs, foreigners shunning the U.S., high interest rates for credit cards, and the prospect of a recession.”

Home prices in Southern Nevada hit an all-time high again last month as the market continues to be flooded with listings, but with prices not dropping, the market remains relatively stagnant. High interest rates continue to keep most buyers on the sidelines as they sit on rates they got during the pandemic.

National rental outlook

In the U.S. as a whole, the overall median asking rent dropped 0.5 percent year over year to $1,642 in June of this year, however rents remain just $63 off the all-time high of $1,705, which was set in August 2022, according to Redfin’s report. Inflation increased dramatically during this time, driving rental rates and home prices up to all-time highs.

Redfin outlined the market condition currently impacting the overall rental scene in the country in its latest report, noting there is a drop, however compared to the roller coaster ride of the pandemic, rents have been relatively flat for roughly the last year, posting annual increases or declines of about 1 percent or less since March of last year.

“Rents have declined slightly but steadily over the last several months because there’s more apartment supply than demand, even as many Americans opt to rent instead of buy given high homebuying costs,” read the report. “U.S. apartment construction is near a 50-year high, leading to a lot of vacant units. A separate Redfin analysis found that less than half of newly built apartments completed at the end of 2024 were rented within three months. That gives renters negotiating power with landlords.”

Redfin’s Sheharyar Bokhari, a senior economist, said right now renters have the upper hand in most all of the metro markets as landlords are scrambling to lease newly built units.

“In certain parts of the country, renters may be able to negotiate discounted rent, flexible leases or free parking. But these perks may be short-lived given that apartment construction is expected to slow and rental demand is expected to remain strong.”

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.