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Las Vegas ranks 2nd nationally for rent increases

As the sticker shock continues at the grocery store and gas station, rising rents are also weighing on the bank accounts of many southern Nevada residents.

A recent study found that residents of the Las Vegas metro area are experiencing one of the highest percentage rent increases between 2019 and 2022 before the pandemic.

Of the 15 major U.S. metros with the fastest rising rents, the Las Vegas-Henderson-Paradise area ranked No. 2 with median rent in 2022 posting a 24.8% increase to $1,485, from 1 $190 in 2019. The Sacramento-Roseville-Folsom, California metro area was No. 1 with its median rent up 25.3% to $1,830 from $1,461 in 2019, the study found. released by San Francisco-based rental software company Stessa Inc.

It’s no secret that the Southern Nevada housing market has been on fire for the past year as limited supply has caused buyers to compete for homes and pay well over above the asking price. This flurry of activity has impacted the rental market, Stessa said.

“With rising house prices, 70% of rental market growth since 2009 has come from higher income people who might otherwise have been able to buy a home,” the Stessa researchers said. “And as more high-income people enter or stay in the rental market, builders and developers have an incentive to supply more luxury units, which means less new inventory to meet the needs of low-income people. and means.”

The pandemic has exacerbated these problems, leaving potential buyers, out of the market, to continue renting. Meanwhile, developers can’t keep up as they face their own price increases, supply chain challenges and a tight labor market.

Nationally, median rents rose 12.5% ​​in 2022 to $1,445 from $1,284 in 2019. And it’s units of all sizes that are seeing increases with prices rising more than 10% between 2019 and 2022, according to the Ministry of Housing and Urban Development.

Rising rent prices led Culinary Workers Union Local 226 to launch a ballot initiative on Wednesday to cap rents in North Las Vegas.

Nevada State Apartment Association executive director Susy Vasquez said rapid inflation is adding uncertainty to the rental housing sector. Last week, the Labor Department reported that consumer prices jumped 8.3% in April from 12 months earlier, slightly below the 8.5% year-on-year rise. the other in March, which was the highest rate since 1981.

“We realize that rents have increased faster than incomes and that many Nevada residents are struggling to pay their bills,” Vasquez said in a statement, responding to the Culinary Union’s ballot initiative. “We will continue to work with government and community leaders to address these issues, starting with advancing public policies that help our industry build more homes than Nevadans can afford.”

Contact Subrina Hudson at [email protected] To follow @SubrinaH on Twitter.