Las Vegas Multifamily Investment Forecast
Outside Buyers Target Southern Submarkets as Greater Economic Diversification Underpins Market Strength
Sparse vacancy persists across asset classes. A record number of apartments were absorbed last year as Las Vegas' regionally low cost of living attracted new residents and sustained a robust rate of household formation. Expectations for more diverse job creation this year are positioned to further expand the metro's populace and preserve strong demand across all rental tiers. The rapid growth of the local industrial sector will bolster the number of trade, transportation and utilities workers, individuals that historically occupy Class B and C units. The anticipated return of most conventions by the summer has the potential to further drive lower- and mid-tier apartment demand as the volume of leisure and hospitality jobs climbs. Hiring activity by traditional office-using firms last year suggests the amount of higher-paying positions will reach a pre-pandemic mark in 2022. Class A complexes stand to benefit in particular, as new construction is not widespread throughout the metro. Of the units slated for 2022 completion, roughly two-thirds are in Spring Valley and neighboring Sovana. Pockets of development suggest deliveries will minimally impact unit availability marketwide, enabling Las Vegas to maintain the lowest vacancy among Mountain metros.