Las Vegas Multifamily Activity Shows Mixed Results

The Las Vegas multifamily market posted a mixed performance during the third quarter, with rents inching lower despite a modest vacancy dip. A Northmarq survey reported multifamily completions accelerated, with approximately 1,300 units coming online in the last three months, bringing the year-to-date total to nearly 3,700 units.

• Area vacancy trends have been volatile, but conditions are moving closer to the market’s historical norms. After tightening by 30 basis points in the second quarter, the vacancy rate dipped an additional 10 basis points in the last three months to 6.4 percent.

• Asking rents ticked lower in recent months, offsetting gains recorded in the previous quarter. Apartment rents are $1,490 monthly.

• Transaction volume in the local multifamily investment market has been light in 2023. The median price thus far in 2023 is $259,600 per unit, up 5 percent from last year’s figure. While growth in the local labor market is projected to soften in the closing months of 2023, annual gains in Las Vegas will outperform most other markets in the country.