COLUMN: Housing Division releases apartment report

The hard-working Jean Norton from the Housing Division of the Nevada Department of Business and Industry recently finished her annual survey of multifamily housing in the Las Vegas Valley.

The survey creates a database of rental properties; gives interested parties planning tools to target funding; and monitors long-range trends in the rental property market.

Key findings from the 2001 survey:

-- Two-bedroom apartments remain the most popular type. New apartment projects are smaller in number of units than projects built from 1985 to 1999.

-- Vacancy rates for three years running show continued tightening of supply and increased demand for rental units.

-- Vacancy rates for the valley remain unchanged from 2000 data.

-- Vacancy rates fluctuate from 2 percent to 3 percent in growth areas to 6 percent to 12 percent in older, established areas.

-- Multifamily construction has slowed from 1996-1999 rates.

-- Larger apartments continue to be more attractive than studio and efficiency-size units.

-- Rental rates increased in all sizes valleywide during the past year.

-- Two-bedroom apartments showed the greatest rental rate increase at 3.05 percent.

-- One-bedroom apartments remain the most popular type of complexes targeting the 55-plus age group.

-- A demand is growing among seniors for two-bedroom apartments.

-- Monthly rental rates for assisted/independent units are significantly higher than market-rate rents for the nonassisted/independent living rental units.

-- Rental rates for assisted/independent living units have not changed in the past year.

-- Of the rental units available in assisted/independent living complexes, 36.6 percent have been built within the past 1 1/2 years.

-- Vacancy rates within assisted/independent living complexes are much higher than in market-rate complexes. Basic rental rates range from $800 to $4,200 per unit.

-- Average rental rates for targeted active senior apartment units range from $315 to $943 a month.

When looking at the figures by zip code, the urban core of Las Vegas and North Las Vegas showed the highest apartment vacancy rates, indicating an availability of units for low-income tenants. Of course, most of these units fall in the Class C range and are owned predominantly by out-of-state landlords. This leads to the classic slumlord problem.

Mayor Oscar Goodman may be a bit off the mark when he says downtown needs more affordable housing. Downtown doesn't need more affordable housing -- it needs better affordable housing. Another type of housing downtown needs: high-rise apartments and condos aimed at medium-income wage earners. That area is a hotbed of legal, financial and gaming activity, yet all the lawyers, bank executives and mid-level casino honchos have to commute from other parts of the valley.

In the meantime, I salute Jean Norton for her hard work and Housing Division administrator Chas Horsey for his great group of staffers. The division is a self-supporting state entity that deserves a pat on the back.

The Housing Division finances projects that benefit low- and moderate-income individuals and families. During 2000 and 2001, 75 percent of all multifamily units the division helped finance were targeted for the 55-plus population.

Financing is provided through the Multifamily Bond Program; the Low Income Housing Tax Credit Program; the Account for Low Income Housing Trust Fund; and the HOME Investment Partnership Program.

Carmel Hopkins, Real Estate Product Manager for the Las Vegas Review-Journal and Las Vegas Sun, can be reached at 380-4574. Her e-mail address is Carmel_Hopkins@lasvegasnewspapers.com. Snail mail is P.O. Box 70, Las Vegas, NV 89125.

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