Steady employment gains bolstered by the metro’s robust resort and gaming industry will keep apartment demand elevated through 2015. Since the recession, the Las Vegas economy has seen consistent and incremental growth, as improving visitor numbers flow tourism dollars back into the metro. The resurgent local economy, coupled with strong market operations, has encouraged elevated development. Builders will focus new construction on the Southwest Las Vegas submarket, where average rents are high and land is available. New deliveries will reach a five-year high in 2015, greatly expanding available inventory. Residents will more than absorb the new supply due to the slow recovery of the Las Vegas housing market as well as the relative affordability of renting rather than buying. Heavy demand has put downward pressure on the metrowide vacancy rate, which fell to one of the lowest levels since the downturn. These tight market conditions have accelerated the pace of rent growth, pushing rates to the greatest level seen since late 2008.
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