Las Vegas Multifamily Report – Winter 2019
- Feb 25, 2019
Las Vegas capped a strong year for rent growth, as the 7.3 percent year-over-year improvement was high enough to lead all major metros through 2018. Following what has been an entire cycle of finding its footing, the metro is now a hot spot for commercial development, as well as multifamily investment opportunities. With employment and population on the up and up, further attention is flowing Las Vegas’ way, boosting demand for housing. As a result, the average rent hit a new cycle peak, standing at $1,052 as of December 2018. However, that’s still far more affordable than across most coastal markets in the West.
Las Vegas gained 33,900 jobs year-over-year as of October. Construction soared, adding 7,400 positions, with several massive developments underway, including the $1.9 billion stadium for the Raiders of the National Football League and Southern Highlands—the Olympia Cos.’ 2,750-acre master-planned development, which is expected to house 25,000 residents.
Multifamily investment sales in 2018 crossed the $2 billion mark for the third year in a row. The average price per unit also reached a cycle peak, at $122,810. Some 3,477 units were completed, while another 17,400 were in the planning and permitting stages. With only 2,340 units scheduled to come online in 2019, demand is expected to push rents up by another 4.0 percent.