December 13, 2021

Las Vegas Q3 Multifamily Market Report: Vacancy Posts Sharp Decline, Rents on the Rise

Highlights:

The Las Vegas apartment market is on an upswing, with property fundamentals improving and businesses bringing back workers. The outlook for 2022 has brightened, with more business and trade show travel expected, which should support the local economy.
After holding mostly steady for more than a year, the local vacancy rate has improved significantly in each of the past two quarters. The rate fell 80 basis points to 3 percent in the third quarter; year over year, vacancy is down 140 basis points.
Rents rose nearly 8 percent in the third quarter, building on healthy gains in the preceding three months and reaching $1,347 per month. In the past year, rents have advanced 15.5 percent.
Investment activity has been elevated in each of the past two quarters. The total transaction count for 2021 has already topped levels from all of last year. Prices are rising in response to heightened investor demand and improving property fundamentals. The median price in sales thus far in 2021 is $171,500 per unit, while cap rates have averaged 4.1 percent.