Las Vegas’ multifamily market continues to benefit from the metro’s blooming economy. Rental demand is also strong, boosted by a consistent wave of baby boomers who are choosing to relocate. This has kept rent growth among the highest in the country, at 5.4 percent last year to an average of $1,117. Despite rent hikes, Vegas remains much more affordable than coastal California metros.
The metro gained 29,200 jobs in the 12 months ending in November. Construction remained the best-performing sector, accounting for more than one-third of growth (10,900 jobs), followed by leisure and hospitality (4,500 jobs). Both sectors are poised for sustained growth with current projects expected to boost an already booming industry. Of the multitude of projects currently underway, the NFL Stadium is scheduled to open in late July, while the 777-room Circa Resort is on track to open in December. Office-using employment sectors are also on the rise, pushing up upscale rental demand, with financial activities and professional and business services adding a total of 7,100 positions.
Transaction activity marked a new cycle high in 2019, with more than $2.9 billion in apartments changing hands. The average per unit price rose another 24.3 percent to $152,486. On the construction front, last year brought 2,397 new apartments, with some 4,800 additional units underway at the start of the year.