May 19, 2023

Las Vegas 1Q23 Multifamily Market Insights: Development activity gaining momentum

Highlights:

Operating conditions in the Las Vegas multifamily market were impacted by the January 2023 expiration of Clark County’s rental assistance program. The vacancy rate, which had remained near all-time lows for more than a year, spiked at the start of this year.
Vacancy spiked 410 basis points in the first quarter to 6.8%. The rate had maintained artificially low levels throughout nearly all of 2022. The region’s long-term rate is between 4% and 5%.
Asking rents declined at the start of 2023, following rapid increases in recent years. Rents fell by 2.3% in the last three months to $1,484 per month. Year over year, asking rents advanced by 1.7%.
The investment market cooled at the start of the year with fewer properties selling during the first quarter. The median price year to date reached $218,600 per unit, while cap rates ranged from 4.75% to 5.5%.