Report: Las Vegas Multifamily Market Slowly Improving

LAS VEGAS, NV-The Las Vegas multifamily market is slowly beginning to improve from its performance earlier this year, but some indicators remain below 2001 levels, according to a new report by Hendricks & Partners.

According to the research, Las Vegas’ population and home prices are on the rise, which is a good sign for the region’s apartment market. The metro area is growing by between 5,000 and 8,000 residents per month, while the median price of a new home has climbed 12.6% over the twelve-month period ending May 2002. While these two factors have already helped to boost the multifamily market from its weaker performance earlier this year, the region is still not at the same level that it was in 2001.

Vacancy rates are still significantly higher than they were in 2001, which has resulted in a slowdown in rent increases, the Hendricks & Partners report points out. The overall average vacancy rate rose from 4.1% in the second quarter of 2001 to 6.9% in the same period this year, according to the research. Meanwhile, the average market rent has risen from $725 to $733 in the one-year period ending June 2002, which marks a mere 1.1% increase.