The Las Vegas multifamily market experienced a mixed performance in the third quarter, with rents slightly decreasing despite a small drop in vacancy rates. According to a survey by Northmarq, there was an increase in multifamily completions during this time period, with approximately 1,300 units being added to the market. This brings the total number of new units for the year up to almost 3,700.
Vacancy trends have been fluctuating but are now closer to historical norms. After tightening by 30 basis points last quarter, vacancy rates decreased another 10 basis points over the past three months and currently stand at 6.4%.
Asking rents have also seen some fluctuations recently and have offset gains from previous quarters. The current average monthly rent for apartments is $1,490.
In terms of investment activity in the local multifamily market for this year so far has been relatively low compared to previous years. However,the median price per unit has increased by five percent since last year’s figure and currently stands at $259,600 per unit.
Despite projections that growth may slow down towards the end of this year due to changes in labor markets across various regions,the annual gains expected for Las Vegas will outperform most other markets nationwide.
