Las Vegas Q4 Multifamily Market Report: Labor Market Gains Momentum, Fueling Rent Spike
Highlights:
- Strong renter demand and limited supply growth fueled the Las Vegas multifamily market in 2021. Demand was sparked by a strong recovery in the local labor market, and vacancy ended the year at its lowest point since 2017. The tight conditions allowed for steep rent increases, with the most rapid growth occurring in the second half.
- The vacancy rate remained stable in the fourth quarter, closing out the year at 3 percent. Overall vacancy improved by 130 basis points in 2021.
- Asking rents in Las Vegas advanced 21.2 percent in 2021, reaching $1,431 per month. Rent growth was most pronounced in the second half of the year when rents spiked over 16 percent.
- The Las Vegas investment market closed the year on an upswing. Transaction activity spiked in the fourth quarter while sales prices rose during the same time. Cap rates dipped below 4 percent in the second half of the year, with most transactions in the fourth quarter closing with cap rates ranging between 3.25 percent and 3.75 percent.
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