{"id":364,"date":"2019-09-24T00:22:34","date_gmt":"2019-09-24T07:22:34","guid":{"rendered":"https:\/\/www.storagecafe.com\/blog\/?p=364"},"modified":"2020-11-09T00:53:09","modified_gmt":"2020-11-09T08:53:09","slug":"las-vegas-emerges-as-the-hottest-self-storage-market-in-the-u-s-in-terms-of-rent-growth","status":"publish","type":"post","link":"https:\/\/www.storagecafe.com\/blog\/las-vegas-emerges-as-the-hottest-self-storage-market-in-the-u-s-in-terms-of-rent-growth\/","title":{"rendered":"Las Vegas Emerges as the Hottest Self Storage Market in the U.S. in Terms of Rent Growth"},"content":{"rendered":"<p>Self-storage street rates fell quite steeply this summer in most of the major metros in the US, with one glaring exception &#8211; Las Vegas. Not only did self-storage rent not decrease in Las Vegas area, but<strong> it actually saw double-digit growth<\/strong> in some cases.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Self-Storage-Still-a-Hot-Commodity-in-Las-Vegas\"><\/span><strong>Self-Storage Still a Hot Commodity in Las Vegas<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The average national street rate for a 10X10 non-climate controlled (non-CC) storage unit dropped by 3 percent in July 2019, compared to the same month of 2018, according to <a href=\"https:\/\/www.yardimatrix.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Yardi Matrix<\/a>. However, during the same period, street rates for the same type of <a href=\"https:\/\/www.storagecafe.com\/self-storage\/us\/nv\/las-vegas\/\" target=\"_blank\" rel=\"noopener noreferrer\">storage unit in Las Vegas<\/a> grew by no less than 5%.<\/p>\n<p>Moreover, the <strong>rates for <a href=\"https:\/\/www.storagecafe.com\/storage-unit-size-guide\/5x5-storage-unit\/\" target=\"_blank\" rel=\"noopener noreferrer\">smaller units<\/a> (5X5), both CC and non-CC, increased by 10% year-over-year<\/strong>. This newfound appetite for Las Vegas self-storage is very much connected to the shifting dynamics of the city. Its profile has been changing in recent times, evolving from primarily a tourist destination to a place where people are moving to live long-term. Less Sin City and more family city, so to speak!<\/p>\n<div class=\"infogram-embed\" data-id=\"c316164c-061f-42bf-bf68-dfadec882257\" data-type=\"interactive\" data-title=\"StorageCafe\"><\/div>\n<p><script>!function(e,t,s,i){var n=\"InfogramEmbeds\",o=e.getElementsByTagName(\"script\")[0],d=\/^http:\/.test(e.location)?\"http:\":\"https:\";if(\/^\\\/{2}\/.test(i)&&(i=d+i),window[n]&&window[n].initialized)window[n].process&&window[n].process();else if(!e.getElementById(s)){var r=e.createElement(\"script\");r.async=1,r.id=s,r.src=i,o.parentNode.insertBefore(r,o)}}(document,0,\"infogram-async\",\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\");<\/script><\/p>\n<p>It\u2019s worth mentioning that the <strong>average metro street rate for a <a href=\"https:\/\/www.storagecafe.com\/storage-unit-size-guide\/10x10-storage-unit\/\" target=\"_blank\" rel=\"noopener noreferrer\">10X10 unit<\/a>, now resting at $107<\/strong>, is still below the national average of $116, allowing Las Vegas to remain for now one of the nation\u2019s renter-friendly markets. Many of the cities on the West Coast have average street rates north of $150 per month, with San Francisco rate now standing at a whopping $194 per month.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whos-Moving-to-Las-Vegas-and-Why\"><\/span><strong>Who\u2019s Moving to Las Vegas and Why?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With a population of more than 2.2 million, the Las Vegas-Henderson-Paradise metro area keeps growing and expanding. The most recent <a href=\"https:\/\/www.census.gov\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">U.S. Census<\/a> data shows that the metro\u2019s population increased by more than 166,000 people between 2010 and 2017, which is a 13% change. People from all over are moving to Las Vegas, but there\u2019s one specific place that shows an increased preference for Las Vegas and that is Los Angeles County.<\/p>\n<p>Almost 14,200 people from Los Angeles County moved to Las Vegas-Henderson-Paradise metro between 2010 and 2017, which is almost 10% of the total new moves in that period. A distant second-in-line, in terms of inbound migration to the Las Vegas metro, is San Diego County, also in California, with approx. 2,800 people. So, why are Californians, and Angelenos in particular, so attracted to the Las Vegas metro?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lower-Home-Prices-Turn-Las-Vegas-into-Favorite-Relocation-Destination-for-Angelenos\"><\/span><strong>Lower Home Prices Turn Las Vegas into Favorite Relocation Destination for Angelenos<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Housing costs stand out as the most obvious reason for this migration trend. According to Yardi Matrix, a person living in the Las Vegas metro area pays, on average, $1,114 per month as of August 2019, while someone living in the L.A. area pays more than double that amount \u2013 the average rent for L.A. apartments in August 2019 was $2,582.<\/p>\n<p>The median sale price of a home in the Las Vegas metro area, including single family houses, condos and townhouses, was $265,000 in April 2019, according to <a href=\"https:\/\/www.propertyshark.com\" target=\"_blank\" rel=\"noopener noreferrer\">Property Shark<\/a>. In Los Angeles county, the median sale price of a home during the same month (single family, condo and coop units included) was more than double, at $605,000. It\u2019s no wonder, in these circumstances, that Californians are flocking to Nevada and, particularly, to the Las Vegas metro area.<\/p>\n<p>Las Vegas has always been a hotspot for transplants, attracting people from all over the U.S. and even the rest of the world. 23% of the metro\u2019s population is foreign-born, which is more than 1.5 times the national rate.\u00a0 Wherever they\u2019re coming from, one thing\u2019s certain: moving to a new place comes hand in hand with the need for self-storage. So, what does the self-storage inventory look like in Las Vegas?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"New-Projects-in-the-Pipeline-but-Fewer-than-National-Average\"><\/span><strong>New Projects in the Pipeline, but Fewer than National Average<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Yardi Matrix, the Las Vegas metro has about 273 self-storage properties, with over 20 million square feet in total inventory. Another 13 properties are in planning stages, potentially bringing an <strong>additional 1.2 million square feet of storage space<\/strong> to the market, while four properties with almost 285,000 square feet of space are already under construction.<\/p>\n<p>Although that\u2019s a sizable supply of new self-storage space, Las Vegas is below the national average when it comes to new construction, so there\u2019s still room for expansion. As of August 2019, under-construction and planned facilities in Las Vegas represented 7.1% of the existing inventory, while the national average sits at 9.5%.<\/p>\n<p>With <a href=\"https:\/\/www.bls.gov\/web\/metro\/metro_oty_change.htm\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">21,600 new jobs<\/a> created in the last 12 months alone, <strong>Las Vegas is bound to keep its status as one of the country\u2019s most appealing destinations to move to<\/strong>. Strong net migration and a consistent yet below the national average new supply of self-storage are the main factors behind the metro\u2019s growing self-storage rental rates.<\/p>\n<div><em>This report was compiled by StorageCafe , a self-storage search portal powered by Yardi. The data used in this report was provided by our sister company <\/em><em><a tabindex=\"-1\" title=\"https:\/\/www.yardimatrix.com\/\" href=\"https:\/\/www.yardimatrix.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yardi Matrix<\/a><\/em><em>, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors.<\/em><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Self-storage street rates fell quite steeply this summer in most of the major metros in the US, with one glaring exception &#8211; Las Vegas. Not only did self-storage rent not decrease in Las Vegas area, but it actually saw double-digit growth in some cases.<\/p>\n","protected":false},"author":166,"featured_media":3702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-everything-storage"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Las Vegas, the highest self storage rent growth nationally | StorageCafe<\/title>\n<meta name=\"description\" content=\"Self-storage street rates fell steeply this summer in the US, with one exception - Las Vegas. Self-storage rates saw double-digit growth here in some cases.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.storagecafe.com\/blog\/las-vegas-emerges-as-the-hottest-self-storage-market-in-the-u-s-in-terms-of-rent-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Las Vegas Emerges as the Hottest Self Storage Market in the U.S. in Terms of Rent Growth\" \/>\n<meta property=\"og:description\" content=\"Self-storage street rates fell steeply this summer in the US, with one exception - Las Vegas. 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