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Loading ...In Nevada, the grim status of the economy is causing a negative ripple in this valley state resulting to increased cases of foreclosures and unemployment. On a daily basis, 35 families are losing their homes to foreclosures, as unemployment rates reached 7.34 percent, which is higher than the national level of 6.1 percent during the third quarter of this year.
With more families losing their homes, the demand for apartment and rental units would follow the same pattern; however, the freeze on construction of additional units is causing an alarming shortage to service these demands.
The upswing of Nevada foreclosures resulted to more displaced families seeking temporary residences in apartment units. This demand for rental options resulted to an increase of 2.6 percent in the north valley, which posted the strongest growth rate.
On the other hand, rental markets in the central/east sections saw a 1.6 percent decline. Rates vary from $769 per unit at the northeast, which posted the lowest, up to $1,014 per unit at the southwest which exhibited the highest rent rates in the valley for the third quarter.
With the financial market in the tight squeeze due to the crisis in foreclosures, the global financial status is still very much uncertain causing investors to hold on to their capital. This resulted to less ventures in the construction of new and additional rental and apartment units. With the growing number of foreclosure properties, the market for rental space would continue to rise in parallel. In Nevada, occupancy rates rose to 94 percent towards the end of September.
This is slightly higher than statistics from last year. The demand continues to increase even if rates are in the upswing. Average rent ranges to $890 per month, which is higher than last year’s figures by $7.
Despite these problems in foreclosures, the increase in rental demands would benefit landlords. With the steady increase in demand, rental prices are expected to stabilize and maintain present levels, providing more stability to the rental market.
