Las Vegas is poised to see a large number of multifamily construction starts in 2012 and 2013.
The city has experienced a large number of single-family foreclosures and multifamily defaults in recent years, according to Multifamily Executive. Despite that, 2,126 apartments are scheduled for completion this year, with over 1,000 more units anticipated the following year. Some industry stakeholders have been buying up distressed land for some time, and are now prepared to develop new properties to meet returning demand.
They see tourism beginning to return, fueling new construction and jobs in a variety of sectors. The people holding those jobs are looking for places to live, and these developers believe there are more of them on the way. Real estate data firm Axiometrics predicts that rents, which were down 1.75 percent year-over-year in April, should rise 2.4 percent over the course of this year.
The expectations of the rental market in the metro area are based partly on the difficulties in the single-family market, MFE reports. Rental property management firms may find their new tenants are, in many cases, former homeowners. How long-term that shift of residents is remains to be seen.