Las Vegas Multifamily Report – Summer 2021

Rental development in Las Vegas, click to enlarge

The second quarter of 2021 saw unprecedented rental growth in Las Vegas, with the rate rising 1.7 percent to $ 1,278 in the last three months through June. Year-on-year rents rose by 14.6 percent. The combination of the rapidly growing population and limited supply caused the occupancy rate of the stabilized properties to rise by 110 basis points to 96.0 percent in the 12 months ending in May, which indicates continued demand, particularly for lifestyle units.

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Sales volume and number of properties sold in Las Vegas, click to enlarge

The unemployment rate improved to 8.9 percent in May, according to preliminary data from the Bureau of Labor Statistics, falling short of the national rate of 5.8 percent. The labor market saw a 4.4 percent decline in the 12 months ended May, outpaced by the nationwide rate of -1.9 percent. But with the economy reopening, Las Vegas is recovering: Leisure and hospitality were up 70.4 percent year-on-year by May, and 89,400 jobs were created. The number of visitors is on the up as hotels and casinos open at full capacity in June. Resorts World Las Vegas was also opened to the public in June.

Investment sales have rebounded after already beating the 2020 total deals in the first half of the year to reach $ 1.4 billion. As property values ​​rise, companies on both sides of the deal are likely to re-evaluate their positions.

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