Las Vegas Multifamily Report – Summer 2019
The metro’s affordability advantage, particularly compared to coastal California markets, adds to Las Vegas’ economic gains.
Las Vegas rent evolution, click to enlarge
With rents up 7.3 percent year-over-year through April—the highest rate among major U.S. metros—Las Vegas’ multifamily market continues to benefit from the city’s rapid economic expansion. The average rent reached $1,072 in April, well below the U.S. average, and the metro’s affordability advantage over other western cities, especially coastal Californian metros, continues to boost in-migration.
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Although construction outperformed all other sectors with the addition of 6,700 jobs, the metro continues to have a shortage of skilled workers in the field. The list of large projects in the area includes the Las Vegas Raiders stadium, nearly 50 percent complete; the expansion of the Las Vegas Convention Center, on track for a January 2021 opening; and the Resorts World Las Vegas, set to open at the end of 2020. Amazon recently opened a 2.4 million-square-foot fulfillment center in North Las Vegas, with need for 1,300 employees, while Sephora is nearing the opening of a 714,000-square-foot distribution center in its vicinity.
Las Vegas sales volume and number of properties sold, click to enlarge
Investment sales in the first quarter of 2019 totaled $680 million, with the average per-unit price rising a solid 40 percent year-over-year. Considering the imbalance between supply and demand, we expect prices for apartments for rent in Las Vegas to continue their fast-paced rise, with the average rate advancing 5.4 percent this year.
