Report: Las Vegas renters are ‘locking’ in their apartments for more than 2 years

Las Vegas renters are typically staying in their apartments for an average of just over two years, according to a new study.

Compared to other Western U.S. cities such as Denver, Salt Lake City and Phoenix, Las Vegas stands out as having the highest competition per apartment unit, and the valley’s lease renewal rate grew significantly over the last year and ranks atop the region (which does not include California), according to the study from RentCafe, which is owned by Yardi.

Las Vegas is the 37th most competitive rental market right now, the author of the study, Veronica Grecu, a researcher at RentCafe wrote, with Miami, Chicago and North Jersey leading the way, respectively. Grecu said the main reason Las Vegas has a more competitive rental market right now is because apartment construction lagged at half the pace behind comparable cities such as Salt Lake City, Denver and Phoenix.

This has created a “locked in” phenomenon much like the housing industry in Las Vegas where renters lock into lease rates for longer periods thinking rates will go up substantially if they choose to leave. The new supply of multifamily units that came on the market last year and into 2025 has not been enough to meet demand, according to RentCafe statistics through the end of March.

“On the contrary, it didn’t offer apartment dwellers enough motivation to look for something new. Consequently, the lease renewal rate in Las Vegas increased by 4.1 percent year-over-year to reach 68 percent, the highest in the entire region,” Grecu said.

Inventory didn’t grow by much

Las Vegas’ occupancy rate remains at 92 percent, which means approximately seven renters are applying for the same unit, about the same as the national average, according to RentCafe. Most unrented apartments in the valley stay vacant for around 46 days, a few days longer than the national average (43). Las Vegas’ multifamily supply only grew 0.6 percent over the last year, which is a big problem for the city, Grecu added.

“Compare that with Denver, for example, where inventory grew by 1.42 percent, which not only kept the lease renewal rate below 60 percent, but also helped the occupancy rate drop by 1.4 percent. Most importantly, competition per vacant unit eased with five applicants this spring, compared to seven one year ago.”

Renters in Las Vegas stay in one place for approximately 26 months (the second highest length in the West), compared to 24 in Denver, 23 in Phoenix and 22 in Salt Lake City.

Overall, Las Vegas’ Rental Competitiveness Index score is the same as the national average at 75.3, ranking as the “hottest large market” in the West (excluding California) and 37th nationwide.

“New data shows there’s a strong link between initial lease lengths and renewal terms,” said Grecu. “Renters who start with longer leases are more likely to renew for extended periods. That said, Las Vegas stands out in the West. Renters here typically sign a lease for 13 months and renew it for 12 months. Additionally, they stay in the same apartment for an average of 26 months, longer than most metros in the region.”

Grecu added while Las Vegas has a high rate of lease renewal rates for the West, it is still relatively low compared to the overall U.S.

“Markets where renters tend to stay longer also see higher lease renewal rates. This trend is most evident in high-demand, low-supply regions like the Northeast, where renters stay for just over three years on average,” she said. “In contrast, renters typically don’t stay as long in regions with greater apartment availability and more flexible market conditions. For example, the average length of stay in the West is two years.”

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.