Las Vegas’ multifamily fundamentals continued to soften throughout the year, with rents inching up or remaining flat during just three of the first 10 months of 2023. The average asking rent declined 0.2 percent on a trailing three-month basis and 3.1 percent year-over-year through October, to $1,460. The occupancy rate in stabilized properties fell to 92.6 percent as of September, following another 120-basis-point decrease over 12 months.
Despite moderation in the rental segment, the economy has other plans. Las Vegas employment remained among the strongest in the U.S., up 4.7 percent, or 39,100 jobs, in the 12 months ending in August, nearly double the 2.5 percent national average. Yet the rate was 200 basis points below the January figure. Unemployment stood in the 5.5 percent to 6.1 percent range throughout the year, improving to 5.4 percent in October, according to preliminary data from the Bureau of Labor Statistics. Las Vegas trailed the U.S. (3.9 percent) and the state (5.4 percent). During the interval, three sectors lost 3,000 jobs combined, while the leading two sectors accounted for nearly three quarters of the jobs added—leisure and hospitality (16,500 jobs) and professional and business services (12,000 jobs).
Developers delivered 1,977 units in 2023 through October, nearly all in Lifestyle projects. Another 10,788 units were under construction. Meanwhile, investors traded just $366 million in rental assets, for a price per unit that declined almost 30 percent year-over-year.
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