Increased Demand Pushes Up Rents in Las Vegas
- May 31, 2018
Despite having tourism and leisure and hospitality as its main economic drivers, Las Vegas has been a late bloomer in this real estate cycle. But the city’s full recovery is a safe bet, given that it ranks among the top 10 metros for population growth and had the second-largest employment gain in the country, at 2.9 percent in 2017. These factors have pushed rents up 5.3 percent year over year through March, to $980, still trailing the $1,372 U.S. average.
Up by 18.4 percent, construction led the metro’s employment expansion in 2017, adding 11,000 new positions. In-progress deliveries exceed 5,200 rental units, 4,300 of which are slated for completion by year-end. Moreover, several projects are likely to maintain this trend in the coming years: The $1.9 billion Las Vegas Riders NFL stadium broke ground in January and needs about 3,000 workers, while the $1.4 billion expansion of the Las Vegas Convention Center calls for more than 7,900 employees.
Transaction activity has softened in 2018, with some $317 million in apartments trading through March, following two consecutive years that each saw sale volumes above $2.4 billion. Per-unit prices remained virtually flat across the metro, continuing to mirror investors’ focus on Renter-by- Necessity properties. Yardi Matrix forecasts rents will rise 4.8 percent in 2018.
Read the full Yardi Matrix report.