Las Vegas remains light years behind every other apartment market nationally in the recovery process, but the Sin City is now at least moving in the right direction – finally. Las Vegas showed solid momentum in both occupancy and rent in 2013, thanks to gradually improving job growth levels.
One reason for Las Vegas finally moving in the right direction is that job levels are gradually improving. In fact, job growth numbers in 2013 were actually pretty good with more than 20,000 jobs being added. However, that number is still 7% below prerecession peaks.
With demand for apartments remaining strong and new supply levels minimal, occupancy jumped to 92.6%. While not great, it is a jump of 160 basis points in 2013.
Annual rent growth FINALLY showed a little momentum as same store rents climbed 1.9% in 2013, the largest increase seen in Las Vegas since 2007.
What’s in store for Las Vegas in 2014? The road ahead for the metro is expected to remain quite bumpy with revenues cooling to just below 2.0%. But hey, at least the Vegas apartment market is moving in the right direction.