Las Vegas Multifamily Report – May 2023
Despite softening in the multifamily market, the local economy shows encouraging signs.
Las Vegas rent evolution, click to enlarge
The Las Vegas multifamily market is facing challenges, with rent and occupancy declines following an interval of solid growth. However, fundamentals are still relatively sound, as employment and demographic trends remain positive. At the end of the first quarter of 2023, average rents were down 0.2 percent on a trailing three-month basis, to $1,472. Through that time, the national average remained flat, at $1,706.
Las Vegas sales volume and number of properties sold, click to enlarge
Employment growth was 5.1 percent in 2022, while the jobless figure stood at 6.0 percent in February, above the state average and the highest rate the metro has seen in 18 months. Only two sectors posted losses, with other services and information down a combined 500 jobs in 2022. Leisure and hospitality added 16,000 jobs, as the metro’s economic cornerstone continued to regain positions. Although still short of pre-pandemic levels, tourism is rebounding, with sports-focused efforts such as new athletic franchises and the upcoming Las Vegas Grand Prix set to galvanize the comeback.
Las Vegas. Photo by Pictures-and-Pixels/iStockphoto.com
Investment slowed down considerably in 2023, at $81 million through the first quarter, on the back of a single confirmed upscale transaction. Investment has been progressively dwindling since 2022, when $3.1 billion in assets traded. The metro had 8,900 rental units under construction and another 21,000 in the planning and permitting stages, but inventory additions have consistently underperformed during the cycle.
