Multifamily Investment Activity in Las Vegas Likely to Pick Up in Coming Quarters

Highlights: 

• Multifamily property fundamentals have steadied in recent quarters, as gains in the local-employment market support absorption of new units. Construction remains active, with 2024 likely to be the peak year for new deliveries before a slowing pace of starts  eventually results in easing supply-side pressures.
• Vacancy has stabilized during the past few quarters. The rate ended the first quarter at 6.7%, 10 basis points lower than one year earlier.
• Rents have been mostly flat since the beginning of 2023. Asking rents decreased by 0.3% during the first quarter to $1,495 per month but are up 0.7% year over year.
• Transaction volume in the Las Vegas multifamily market remained limited in recent months, and sales in the first quarter of 2024 lagged the 2023 pace. Prices have trended lower, particularly among Class C assets, while cap rates are ranging between 5.5% and 6.25% in most cases.

Read the report or contact our Las Vegas office to learn more.