The astounding rent growth in Las Vegas continued through the third quarter, up 2.6 percent on a trailing three-month basis through October, to $1,437. On a year-over-year basis, the average rate marked a 23.0 percent jump, which placed the metro third among the country’s best-performing markets. Robust population expansion and limited inventory put upward pressure on the occupancy rate in stabilized properties, which rose 100 basis points in the 12 months ending in September, to 96.8 percent.
The unemployment rate improved to 7.4 percent in September, according to preliminary data from the Bureau of Labor Statistics, still behind the 4.8 percent U.S. rate. Yet, job growth ranked first among major markets, posting a 9.1 percent expansion in the 12 months ending in August, double the 4.6 percent U.S. rate. Leisure and hospitality and trade, transportation and utilities led growth, accounting for two-thirds of new positions, or 57,300 jobs combined. With conventions scheduled for October, the trend is likely to continue. Only the public sector lost jobs during the period.
In 2021 through October, 2,898 units came online in Las Vegas, already above last year’s total. Another 5,538 units were underway. Transaction activity also surpassed last year’s by a long shot, with sales totaling $2.5 billion. Values continued to rise—the per-unit price neared the $200,000 mark following an 18.8 percent increase.