How The Booming Population In Vegas Affects What Renters Pay
[Guest Post]
Population growth in Las Vegas, and Nevada as a whole, is nothing new. Over the past three decades, the population has steadily grown at a higher rate than anywhere else in America. Forecasts expect the population boom to continue on an upwards curve over the coming decades.
There are a number of reasons Las Vegas is such a popular destination for Americans. Housing and rent are significantly cheaper than the national average. Many employers have moved their companies there and employment opportunities bring in job seekers. Increasing tourism is responsible for thousands of more jobs becoming available (even after the pandemic). Furthermore, there is no state income tax.
However, as the population grows in Las Vegas, so does the demand for housing. As such, property and rent in Vegas is becoming more expensive.
Here is how the booming population in Vegas is impacting the price of rent.
A Steep Incline
If you expected the pandemic to drive the price of rent down, you’re not alone. Many expected the mass loss of jobs to make the high price of rent across the country unsustainable. However, the decrease in the price of rent has not come about in most regions, and certainly not in Las Vegas.
On the contrary, the price of rent in Vegas is increasing on a relatively steep incline. At the start of the pandemic, average rent in Vegas was $1,109. It has since increased to $1,263 as of July 2021. While it is still below the national average, the gap is smaller than ever.
In Las Vegas, this is largely to do with the booming population. The high demand for housing allows landlords to charge higher prices. But this is not the only factor.
Additional Renting Costs
The price of rent is not the only sum that renters can expect to pay. With more people flocking to the city, the cost of living may increase. You may find that interior decor becomes more expensive, as well as furniture.
Renters insurance is another cost you’re going to need to account for. The good news is that the renters insurance cost does not increase on the same curve as the price of rent. After all, renters insurance covers your possessions and personal liability and not the apartment or home. That is covered by the landlord’s insurance. Renters insurance, as it is, is extremely cheap, starting at as low as $5 a month.
Expenses like electricity and water are also unlikely to rise too much with population growth, although the increased demand could lead to a need for additional infrastructure, the burden of which the city may place on consumers.
Employment and rent
Job opportunities in Las Vegas are increasing, with higher-paying jobs available to job seekers. Along with the economic recovery post-pandemic, many Americans are doing better than before. This is not true everywhere, as in some parts of the country employment opportunities with livable wages are scarce. But Vegas is recovering well.
Landlords are taking the opportunity to charge what Vegas residents can afford, raising prices in accordance with increasing salaries and high-paying jobs. Nonetheless, this may change if the population continues to boom.
As things stand, there are great employment opportunities in Vegas. But if job seekers continue to flock to the city, employers will be able to lower wages, with greater competition for jobs. If that occurs, landlords will have to lower rent regardless of the high demand for housing.
That said, there is no guarantee that this will happen. It is highly possible that jobs will continue to become available at a high rate as business owners from around the country choose Vegas.
Renting in Las Vegas in 2021
It is more expensive than ever to rent in Las Vegas in 2021. This is largely to do with the growing population, although there are other factors at play.
That said, Las Vegas is still cheaper for renters than the national average. The gap is getting smaller, but Las Vegas is still a great option for people looking for low housing prices and a low cost of living.
The population will continue to increase over the coming years, and with it, the cost of living in Vegas.