Strong In-Migration Keeps Demand Elevated
Las Vegas’ economy took a shattering blow from the pandemic, but its multifamily market bucked expectations—its proximity to high-density California metros and relative affordable status appealed to residents looking to stay put or relocate. In-migration increased demand and pushed up the occupancy rate in stabilized properties by 150 basis points in the 12 months ending in February, to 95.8%. Rents continued to rise, up 0.5% on a trailing three-month basis through March, to $1,187.
Las Vegas unemployment dropped to 9.8% in January, while the 9.3% preliminary February figure pointed to continued recovery. The employment market posted a 11.0% contraction in 2020, nearly twice the -6.8% U.S. rate. The metro’s outlook is promising, however, fueled by the steady reopening of casinos and venues hosting trade shows and related activities, with increased capacity for up to 50% or 250 people. The planned opening of Resorts World Las Vegas this summer, is anticipated to help the leisure and hospitality sector recover after the massive 21.4% contraction recorded in 2020.
Developers delivered 588 units in the first quarter of 2021 and had another 6,410 units underway. Meanwhile, transactions totaled just $84 million in multifamily assets, for a price per unit that dropped a substantial 38.8%, to $113,052, when compared to the first quarter of 2020.
Read the full Matrix Multifamily Las Vegas Report-Spring 2021