March 1st, 2016
Real Estate Recover in Las Vegas
The real estate industry in general has been in trouble since the onset of the Great Recession. However, it seems that the multifamily industry in Las Vegas has recovered at last. Southern Nevada’s industrial market managed to flourish in 2015, in sharp contrast to the years immediately following the Great Recession.
People are finally interested in renting properties in this area again, and the industry is now healthy enough that it can genuinely expand. At the end of 2015, the multifamily market in Southern Nevada had a 4.7 percent vacancy, which is a strong sign of growth. The asking rents were also increasing at last. However, in addition to these encouraging signs of growth, more multifamily units are actually being added, which signals an outright expansion of the industry. Being able to make more money off of existing units is going to help the industry, but there need to be more units or the industry is going to have a ceiling when it comes to its financial growth.
The inventory has expanded to include 1,400 units, and 1,900 units are now being constructed. By the end of 2016, another 1,700 units will at least be under construction. The multifamily option is, in fact, a good one for many of the people who are not able to afford single-family homes. The real estate market has not entirely recovered, and the prices for single-family homes are still very high.
The new generation of young adults, Millennials, are not usually going to be able to afford them. More and more young professionals are choosing to move into multifamily residential units, which is going to make for a more cost-effective option for them. Naturally, this cultural trend is good for the multifamily industry in general.
This is an industry that has recovered more quickly than its competitors.