How Interest Rates Impact Rent Prices in Las Vegas in 2025

Las Vegas is a city built on highs and lows. In 2025, mortgage rates will remain elevated, and rents across the valley are showing surprising trends. Leaving renters and landlords wondering: what’s really happening behind the scenes?

Let’s break down how today’s interest rates are reshaping rent prices in Las Vegas and what it means for you.

📉 Rents in Vegas Are Actually Dropping 

One of the clearest signals we see in 2025 is a decline in average rents in Las Vegas:

• According to the Las Vegas Journal, we are now the second city in the U.S. for year-over-year rental declines, with median rent falling approximately 4% from June of last year to June of this year.
  
  

• The median rent is around $1,478/month currently in the valley. 

This is interesting because it runs somewhat counter to the “rates push rents up” narrative.

Why is Vegas bucking the trend?

1. Softening local demand / economic headwinds

Las Vegas leans heavily on tourism, entertainment, and hospitality. When attendance of visitors falls, this affects jobs, wages, and immigration. With the tourist-driven economy showing signs of weakness in 2025, fewer people are relocating for jobs here, easing pressure on rental demand.

2. Inventory is rising

In the single-family rental space, listings have increased. For example, in the past month, active single-family rental homes in Las Vegas rose from ~2,600 to ~2,700 — a ~4% monthly bump. 

More availability gives renters choices and weakens the tight-supply narrative that often pushes rents upward.

3. The “lock-in effect” of low mortgages

Many homeowners who locked in ultra-low rates during the pandemic are now reluctant to sell. That means fewer homes are entering the for-sale market. Combined with fewer new construction starts (due to high interest and material costs), the supply side is constrained differently.

So while demand softens, supply isn't collapsing — it’s shifting, which blunts upward rent pressure.

🔍 What This Means for Different Players

For Renters

• Negotiation power is higher now than it’s been in years. With rent declines and an increase in listings, landlords will be more willing to offer promotions. 

• Lock in longer leases if you like your spot — rates might bounce back.

• Look carefully — you have more choices. Take time to compare, but not too long, or you will lose your spot.

For Landlords / Investors

• Expect less margin if you’re locked into high financing costs and relying on rising rents.

• Focus on lease-up speed and tenant retention rather than betting on rent hikes.

• Upgrades, amenities, and good management will matter more now. You’ll compete not on rent alone but on value.
  
  

What to Watch in the Next 6–12 Months: In 2025, Las Vegas is experiencing a rare moment: interest rates are high, but rents are softening. For renters, it’s a window of opportunity. For landlords, it’s a moment to shift strategy. 

Follow the local job growth in the tourism & hospitality industry. If hiring rebounds, demand could rise again, and that means fuel for rent growth. Don’t forget to check out the Mortgage rates; if they drop, some renters will convert to buyers. Those who understand the undercurrents will fare best.

At The Mor Group, we specialize in helping landlords navigate shifting conditions. And with RentMor.com, renters can find homes they actually qualify for by searching by credit score. Whether you’re a landlord looking to lease smarter or a renter searching with confidence, we’re here to help you move forward in today’s market.