As established Las Vegas land specialists, we keep a constant eye on market reports to inform our approach as we help our clients list land for sale in Las Vegas or buy land in Las Vegas. Today, then, we wanted to specifically look at CoStar’s 2018 Multifamily Sales Report for our market—read on for our top findings.
An overview of the market:
Let’s start with an overview of the 2018 multifamily real-estate market in Las Vegas:
- Sales Volume–Units & Transactions: We know that there were 118 multifamily transactions in 2018, for a total of 21,617 units sold. The average number of units per sale was 186, with a low unit number of 6 and a high unit number of 720. Finally, the overall multifamily sales volume in 2018 was $2,513M—with a minimum sale of $1M and a maximum sale of $99.6M.
- Sales Numbers: In 2018, the sale price-per-unit for multifamily sales was $115,803—with a minimum price-per-unit of $26,296 and a maximum of $666,666. The average sales price for multifamily housing was $21M—with a low sales price of $1M and a high sales price of $100M. Lastly, the cap rate (the rate of return expected to be generated on an investment property) for multifamily sales in Las Vegas in 2018 was 5.7%—with a minimum of 4.2% and a maximum of 12%.
- Properties Numbers: In 2018, existing units were at 21,794—with a minimum of 6 units and a maximum of 720 units. The vacancy rate was 7.6%—with a minimum vacancy rate of 0% and a maximum vacancy rate of 88%. Asking rent landed at $824—with a low asking rent of $321 and a high asking rent of $1,755. Finally, the 12-month absorption rate (calculated by dividing the average number of sales-per-month by the number of available homes) for multifamily real-estate in Las Vegas in 2018 was 11—with a minimum absorption rate of -55 and a maximum rate of 167.
Top Buyers in 2018 Multifamily Sales:
In 2018, private buyers represented 76% of multifamily buyers (with institutional buyers at 18% and private equity buyers at 5%). The top ten purchasers collectively invested $1,736,555,935 in multifamily properties in our Valley in 2018—while the origins of the purchasers were mostly from California. The highest square footage owned amongst the top 80 buyers was 78,844,407—while the lowest was 2,497. The most prominent purchasers included Blackstone Real Estate Income Trust, Inc., Bridge Investment Group Partners, LLC, TruAmerica Multifamily, McDowell Properties, and 3D Investments. Among 2018’s top 80 multifamily buyers, the top sales value was $489,750,000—and the lowest was $1M. The primary practice of top multifamily buyers in 2018 was categorized as investment/ownership (no surprise there), with other practices including institutional investment and property management.
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Overall, reports like the 2018 multifamily sales report help our team of land realtors in Las Vegas stay on top of local trends as we work to ensure investors and developers are making prudent decisions and paying a smart price for property. Keeping a regular eye on just how local multifamily sales are playing out in our Valley is a proactive way to ensure our buyers and sellers are empowered with the industry information they need before they list their land for sale in Las Vegas or buy land in las Vegas. If you’re interested in learning even more about the real-estate market in our Valley, reach out to our Las Vegas land brokerage team today.