Las Vegas Labor Market Resilient As Development

 

Boosted by significant hiring as the late recovery fully engaged in Las Vegas, housing demand has risen considerably over the past several years. Payrolls in the metro are expanding much faster than the national average, providing a tailwind to both rental housing and single-family homes. However, the majority of affordable single-family homes require much longer commutes to employment hubs, generating elevated demand for apartments. Despite the largest development pipeline of the cycle in 2017, vacancy contracted to the lowest level in over a decade. The trend shows little signs of slowing, providing large increases in the average asking rent as demand remains robust.

 

Builders eye sites along I-215 in Southwest Las Vegas for development. Seeking to supply the workforce housing necessary in the metro, construction sites along I-215 have emerged as popular locations for new projects. Roughly a third of this year’s completions will be along the freeway southwest of the core. These new units in suburban locations provide numerous amenities and quick access to major employers. Solid net absorption in these areas will promote above-average rent growth as 2018 progresses.

 

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Friday, May 11, 2018 | © 2018 Marcus & Millichap. All Rights Reserved.

 

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