A view of a new multifamily apartment complex in the Las Vegas Valley amid an evolving housing market.
The Las Vegas Valley has experienced a significant increase in multifamily apartment inventory, with 4,600 new units added in the past year. This brings the total to 193,129 units, despite a stable vacancy rate of 9.9%. While new construction starts have declined by 25%, demand for affordable housing remains critical, prompting the development of new affordable units. The local housing market is transitioning to accommodate both current residents and newcomers, addressing ongoing housing challenges in the region.
Las Vegas, NV – Over the past year, the Las Vegas Valley has witnessed a significant increase in multifamily apartment inventory, with approximately 4,600 units delivered. The total number of multifamily units in the valley has surged to 193,129, up from 180,165 in the previous year, marking a notable shift in the local housing market.
The city experienced a record high of 9,041 units under contract in 2022, and net deliveries peaked at 6,515 in 2023. This shift indicates a transition from active construction to the absorption of new units, as reported by experts from the CoStar Group. From the beginning of 2023 through April, approximately 13,000 apartments have been built in the Las Vegas Valley, contributing to the increase in total inventory.
Despite the influx of new units, the vacancy rate for multifamily apartments has remained stable, currently sitting at 9.9% since 2024. This stability comes after fluctuations between 8.6% in 2022 and 10.5% in 2023. The net absorption of apartments over the past 12 months has matched the new supply, slightly benefiting the rental market.
The first quarter of 2024 has seen a significant drop in new construction starts for multifamily units, with only 342 starts, a 25% decline from last year’s 1,333 starts. This reduction is indicative of a changing market landscape, as the focus appears to be shifting towards managing and filling newly constructed apartments instead of ongoing construction.
Average rent costs have experienced a mix of increases and decreases across the region. In Henderson, the average rent for a one-bedroom apartment has decreased to $1,530, reflecting a 1.3% drop from March and a 0.6% drop year-over-year. Conversely, Las Vegas has seen a 2.5% increase in rent for a one-bedroom apartment to $1,230, which remains unchanged compared to the previous year.
The pressing need for affordable housing in Nevada has become increasingly evident, with estimates indicating a shortage of 78,000 affordable units statewide, including 60,000 in Las Vegas. In response to this pressing issue, construction has begun on two new affordable housing communities aimed at adding 201 new apartments designated for low to moderate-income households.
Construction of Silverado, a Class A, 342-unit development in Enterprise, is underway and is projected to be completed by early 2027. Located within 10 miles of key landmarks such as the Las Vegas Strip and Harry Reid International Airport, Silverado aims to meet the growing demand for housing and will feature modern amenities like a swimming pool, sports court, clubhouse, and coworking spaces.
The Las Vegas Planning Commission is actively involved in approving new development projects as a means to address housing shortages while accommodating the city’s growing population. Amid rising living costs and a historical pattern of supply and demand imbalance in Nevada, recent trends show a positive demand for housing in Las Vegas, which continues to attract new residents from various states.
Given these trends, it is apparent that the Las Vegas Valley’s multifamily housing market is evolving to meet both the needs of current residents and the influx of newcomers, while also addressing the ongoing challenge of affordable housing for the community.
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