Las Vegas Multifamily Report

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The second quarter of 2021 posted unprecedented rent growth in Las Vegas, with the rate marking a 1.7 percent increase on a trailing three-month basis through June, to $1,278. On a year-over-year basis, rents marked a 14.6 percent jump. The combination of a rapidly expanding population and limited supply pushed up the occupancy rate in stabilized properties by 110 basis points in the 12 months ending in May, to 96.0 percent, pointing to sustained demand, especially for Lifestyle units.

The unemployment rate improved to 8.9 percent in May, according to preliminary data from the Bureau of Labor Statistics, trailing the 5.8 percent national rate. The employment market posted a 4.4 percent contraction in the 12 months ending in May, surpassed by the -1.9 percent national rate. Yet with the reopening of the economy, Las Vegas is rebounding: Leisure and hospitality expanded by 70.4 percent year-over-year through May, adding 89,400 jobs. Visitor volume has been on an upward trend, as hotels and casinos opened at full capacity in June. Resorts World Las Vegas also opened to the public in June.

Investment sales have rebounded, having already exceeded 2020’s overall transaction total during the first half of the year, totaling $1.4 billion. With property values climbing, companies on both sides of transactions will likely reevaluate their positions.