Job Growth Fuels Multi-Family Market Revival
- Dec 23, 2011
Las Vegas’ multi-family market appears to be heading for recovery, according to a recent report from Marcus & Millichap Real Estate Investment Services Inc. In-development retail projects are set to create large amounts of jobs in various sectors, a trend that will help feed the demand for rental housing.
The job market is on its way to 1.4% annual growth, making 2011 the year with the best record since the beginning of the recession. The market will add a projected 10,800 jobs by the end of the year, while 2010 posted 13,800 fewer jobs than 2009.
Buyers from outside Nevada seem to be eager to pick up any available apartment properties. About 20 complexes of 100 or more units have changed hands so far in 2011. Ninety percent of those deals were completed for cash and 80 percent of buyers are from other markets, Marcus & Millichap regional manager Richard Bird told the Las Vegas Review-Journal.
On the construction side, only 680 rental residential units have been completed so far in 2011, which has reduced the downward pressure on occupancy rates. Asking rents have declined by 1.6 percent to an average of $796 per month, while effective rents have taken a 1.5 percent punch, slipping to $743 per month.