The metro’s steadily diversifying economy is resulting in positives for its multifamily market, as well.
The metro’s steadily diversifying economy is resulting in positives for its multifamily market, as well: The average rent posted the highest rate of year-over-year improvement among major U.S. metros, up 7.6 percent as of August to $1,114. Demand has more than kept up with supply, which only picked up and moved closer to the national rate in 2018.
The metro gained 21,300 jobs in the 12 months ending in June, with leisure and hospitality leading growth. The sector is poised for continued expansion in the foreseeable future, with various projects underway, including the 1.3 million-square-foot, 777-key Circa Resort & Casino on the Strip; the 63-story, 4,000-key Fontainebleau, to reopen as The Drew by 2022; and the non-gaming luxury hotel Majestic Las Vegas, which will total 720 guestrooms, 30 corporate suites and six freestanding restaurants. The professional and business services and financial activities sectors rounded out the top three, with the addition of 5,100 and 3,400 jobs, respectively.
Transaction volume surpassed $1.7 billion by August and the per-unit price rose 23.4 percent to $151,351. Also as of August, year-to-date deliveries totaled 1,092 units, and 2019 is on track to become the second-best year for new supply this cycle. Accounting for the rising multifamily demand and the metro’s increasing appeal, we expect rents to advance 7.6 percent in 2019.
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Copyright © 2019 Yardi | All Rights Reserved | November 12, 2019
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