Las Vegas Q3 Multifamily Market Insights: Low vacancies driving additional development activity

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Highlights:

• The multifamily market in Las Vegas recorded a healthy third quarter as vacancy dipped to an all-time low. Rents have posted strong annual gains, but only inched higher in recent months. Renter demand remains elevated, pushing multifamily developers to ramp up the pace of deliveries.
• Vacancy rates in Las Vegas trended lower again in the third quarter, dropping 20 basis points to 2.6 percent. The rate has retreated 40 basis points year over year.
• During the past 12 months, asking rents have spiked 12.3 percent, but the pace of growth has slowed considerably in the second half of 2022. Rents ticked up less than 1 percent in the third quarter to $1,513 per month.
• The Las Vegas multifamily investment market recorded a mixed performance during the third quarter, as sales velocity slowed but prices pushed higher. The median sales price to this point in the year is $275,000 per unit, up 35 percent from the median price in 2021.

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