April 6th, 2016
The Changes in Multi-Family
The multi-family industry in Las Vegas has experienced some notable changes in recent months. The growth in rent costs was increasing for a long time, but it appears to have slowed down as recently as March of 2016. Speculators are wondering why this is happening, and it seems as if the relative success of the multi-family industry in Las Vegas is part of the reason why this is happening now.
Lots of different multi-family housing units have been constructed in recent years. As such, the potential renters are going to have more choices. In a simple case of supply and demand, the increased availability of housing units is going to slow down the growth of the rent charges. There is also the fact that a lot of people living in Las Vegas are still having money problems, just as a lot of other people all around the country and all around the world are still in the process of recovering from the Great Recession. Many people can’t afford higher rents, and the rent cost growth is going to have to slow down in order to accommodate them.
Las Vegas is constructing multi-family apartment units at a pace that is well above the average for the United States as a whole. Eventually, the market is going to recover along with the rest of the economy, and these units are going to increase in value. Real estate is an investment for individuals and for cities as a whole, and the new units are going to pay off more and more.