Multi-Family Real Estate is Alive and Well in Las Vegas!
Whether you are looking for a duplex or a 1,000-unit property, Las Vegas has proven to be an excellent market for investment.
Nevada’s growing popularity as a destination for those moving from other places is reflected in rapidly-growing rental prices. Apartments in Las Vegas are enjoying the third-fastest-growing rental rates in the U.S. compared to other large cities.
Solid job growth and above-national-average population growth of 2.5+% versus .7% nationally will continue to drive apartment demand and increase rental rates. (Source: RentCafe National Rent Prices, August 2018)
We asked our Preferred Partner for Real Estate, Bruce Langson with The Woodcock Real Estate Group, one of Berkshire Hathaway HomeServices – NV Properties’ largest and most successful multi-family teams, to provide us with some insight into their success buying and selling multi-family properties on behalf of their clients. Bruce Langson brings over 48 years of multi-family real estate sales, development, and construction experience to The Woodcock Real Estate Group and our readers.
Bruce outlined the following thoughts for LasVegasRealEstate.com readers considering the purchase, sale, or development of a multi-family property:
We refer Multi-Family clients to the Woodcock Real Estate Group for very specific reasons: Service, Integrity, and Market Knowledge. Click here to learn more: Preferred Partner: Commercial Realtor
Current market trends support multi-family ownership here in the Las Vegas area, says Bruce Langson.
Las Vegas’ past focus on condo development likely created a longer-term shortage of rental inventory. Construction starts, as well as projections, for new multi-family housing are declining. Las Vegas has less than 2% of new completions compared to our total inventory.
We have a classic case of rental inventory shortage in Las Vegas and little new construction on the horizon.
In addition, a return to positive job growth in the past several quarters added demand to the rental market, and Las Vegas appears to have entered a period of steady growth.
Current rents have rebounded from the high of the pre-recession peak by 117%. Rent growth is expected to exceed 3% annually into the future.
Add backlogged rental demand to low inventory and you begin to understand the investment opportunity for multi-family buyers in Las Vegas.
Now consider the fact that multi-family prices in Las Vegas have increased over 50% since 2008, while a composite of all other commercial property sales has risen only 17%. You can understand why a current multi-family owner may wish to take profits by selling.
Delivery of rental units was negligible before and after the Great Recession, as developers focused on the condo and single-family markets. This trend, coupled with significant population growth and loss of inventory to condo converters, resulted in declining vacancies and rising rents.
Delivery of new rental units has been sparse in Las Vegas over the past few years. Steady rental market demand is expected given our demographic trends, but the low number of foreclosed homes and condos diminishes the possibility of the multi-family market softening.
Reasonable land costs and increasing demand for rental communities make Las Vegas a desirable market to develop and build new multi-family communities, says Bruce Langson.
Management of your multi-family property is key to profitability.
Las Vegas has enjoyed a larger than normal rental market for housing. This has groomed many licensed, competent multi-family property management companies.
There are numerous property management companies who currently operate from 600 to 20,000 units here in the Las Vegas area.
Their primary goal is to operate your property in a profitable and stable manner. They can handle the day-to-day activities of accounting, tenant screening, leasing, marketing, maintenance, and any other day-to-day operating issues required to maintain the highest rental income for your benefit, says Bruce Langson.
If you are interested in hiring a multi-family property management company in Las Vegas, please allow LasVegasRealEstate.com to introduce you to our Preferred Partners: Property Management by clicking here: Preferred Partners: Property Management