The Las Vegas real estate market is going strong. In fact, it is considered to be stable enough to weather an economic downturn if one was to impact Southern Nevada. A number of factors have contributed to Sin City’s strong rental market, including higher employment and income rates, flexible living arrangements due to remote work policies, and the fact that Las Vegas continues to draw the crowds with its broad-ranging appeal.
Renting vs. Buying
If you are looking for a place to live, you may be wondering if you’re better off renting or buying a home. Renting is an increasingly popular option for people who feel that they cannot afford to buy a new home or condo at the moment. Renting is also a popular option for people who now have the freedom to live and work in different places and want to try living in a new place without the commitment to staying there that comes from owning property.
Rental Price Forecast in 2022
Housing prices rose in 2021, and that trend is expected to continue in 2022. Similarly, rental prices are also anticipated to increase across the Las Vegas rental market in the coming year. Landlords are raising the rates on their rental properties to account for the fact that demand for rentals is increasing, unemployment levels are low, and the economy is in an overall good position. Additionally, there is a shortage of available rentals, which is also causing rental prices to go up.
Rentals are Still Residential
Even though they’re making big moves when it comes to finding a place for rent, people still prefer to deal with landlords on a much smaller scale. Residential landlords are the ideal choice for prospective renters rather than dealing with large property management companies. In 2020, residential landlords took a hit in many places when renters defaulted on their rent payments when the pandemic started. Unlike large rental agencies that were able to stay afloat with stimulus checks from the government, small-scale landlords suffered. Many were forced to sell their rental units when funding became too difficult. However, forecasts predict that residential landlords will continue investing in Las Vegas rental properties in 2022 and even over the next five years, which will bring more options to the market and allow renters to deal with landlords on a personal level as they prefer.
A Switch From Short-Term to Long-Term Rentals
In the past, people have traditionally looked to rent a place for a short time, whether they were vacationing, renovating their primary home, or staying someplace temporarily for business. However, now that they don’t have to show up at the office five days a week anymore, people opt to rent places for a more extended period. The increasing demand for rentals is also creating a shortage of available places to stay, which means when people find a place that they like, they are more inclined to want a longer-term stay. In addition to simply finding a place to live that they can afford and want to be, renters will also want to choose a long-term rental if they have a good relationship with the landlord. Many landlords also want good long-term tenants and will make an effort to build a good relationship with a tenant they want to keep.
Using Technology for Rentals
As part of their effort to build good relationships with tenants, landlords are turning to technology to improve their efficiency and management. Technology also provides more transparency for both landlords and renters, and it can help make the rental process more accessible and enticing for both parties. Many Las Vegas property management companies are using technology more and more to manage their rentals, including software for property managers and online banking. As the world becomes more reliant on technology and tech-savvy, that trend appears likely to increase even more in the next year.
Infrastructure Funding
Although the fate of the impending bipartisan infrastructure bill has yet to be determined, the bill’s passage could change the rental market in 2022. The infrastructure bill, which is a bipartisan bill, will turn up the heat in the rental market if it passes. If passed, the bill would provide financial support for rental property investors and landlords. Along with the initiative at the federal level, state governments are also looking to get bailout packages passed for renters. If the bill does not pass, individual states may face higher levels of evictions because state-level assistance programs may run out of funding.
Questions for Rental Property Professionals
Just as renters have a number of questions in mind when they are looking for properties to rent, rental property professionals also want some answers to their top questions. In order to prepare themselves for the Las Vegas rental market in 2022, rental property professionals may want to get answers to the following questions:
- Is 2022 a good time to start a rental business?
- What properties are ideal to purchase or sell?
- What are the best demographics to target?
- Why are rental rates so high, and will they drop?
- Are urban apartments a good investment?
- Should I rent single-family homes, multi-family dwellings, or both?
Landlords may want to contact a professional to get personalized responses to these complex questions. However, in general, 2022 looks to be a good time to start a rental business, as demand for rentals is high, and landlords can also ask higher prices for their rentals. Prices are also high for home sales, which means that now is the time to sell a rental property or a home for extra revenue. Rental rates do not appear to be on the decline anytime soon, and landlords should target a variety of renters due to increasingly flexible work schedules and the fact that more people are working from home. Urban apartments are certainly a good investment, as people are still moving to the Las Vegas suburbs, and local landlords will do well renting places of all kinds.
With experience in Las Vegas home rentals and sales, The Mor Group is here to help you find the right place to rent. Visit our website for more information, and don’t hesitate to contact us with your needs and questions today.
