Las Vegas Multifamily Market Report
2024 Investment Forecast
Amid Rapid Growth, Housing Cost Dynamics
Favor an Improvement in Local Multifamily Fundamentals
Homeownership hurdles for most new households fuel long-term rental demand. Apartment vacancy in Las Vegas is at a 10-year high; however, the relationship between income and home prices points to this rate reducing over the near term. Entering 2024, the metro’s median household income trailed the national average by $8,000, while its median home price exceeded the U.S. mean by roughly $50,000. This dynamic and the recent lack of for-sale inventory indicate that immediate homeownership will be out of reach for most of the estimated 25,300 households formed this year. Instead, this group will funnel into the rental pool, a boon for developers with upcoming deliveries and operators of Class B and C complexes. Looking beyond 2024, the metro’s regionally lower cost of living and economic growth are expected to support the addition of 500,000 residents over the subsequent 10 years. This 20-plus percent population boost should support tightening vacancy, especially if local construction begins to pull back as expected.