47°F
weather icon Clear

Demand for luxury apartments continues to increase

According to reports by Coldwell Banker, 2023 will be a record-breaking year for apartment complex completions in Las Vegas as 19 high-end multifamily developments have or will be completed this year or by early 2024 — adding 7,000 units to the city’s inventory. By contrast in 2022, only 882 units came online.

Let’s dig a little deeper into what has changed and why there is a need for more market-rate, amenity-rich multifamily communities in Las Vegas.

Today, many people remain renters for longer than ever before for a variety of reasons. For many, they have been priced out of the housing market due to high interest rates, rising home prices and low inventory. According to the Mortgage Bankers Association (MBA) “the average rate on a conventional 30-year fixed-rate mortgage jumped to 7.31 percent (the week of Aug. 13), up from 7.16 percent the previous week” and “mortgage applications are at a 28-year-low.”

For prospective homebuyers these higher rates continue to impact their purchasing power, leaving many to opt for renting by choice or necessity. A recent survey from Bankrate found that 73 percent of respondents in the market to buy a home say high mortgage rates are holding them back. All these factors, and others, have impacted the Las Vegas rental market and are redefining renters’ wants and needs. But it is definitely good news that the Las Vegas apartment market is set on responding to the growing demand.

For others, changing lifestyles and preference for low-maintenance living with luxury lifestyle-centered amenities is driving the demand for more apartments. In fact, the expectations of what apartment-homes must offer have impacted what developers are now delivering, reshaping the face of the apartment market in Las Vegas. At Ovation, we are proud of the fact that we have long been delivering an elevated lifestyle created by abundant amenities at all our communities — even before this trend emerged. Resort-style pools, dog parks, fitness centers, business lounges, spaces for home offices, green spaces and the latest technology are just a few of the in-demand amenities that have long been part of our multifamily communities.

Las Vegas hits all the hot spots that are driving the need for more market-rate apartment communities including a consistently steady incoming migration.

A recent UNLV report conveyed that Southern Nevada welcomed nearly 100,000 new residents in 2022 and in excess of 75,000 in 2021. Professor Stephen Miller of the UNLV Center for Business and Economic Research is predicting 1 million more people in the valley in the next 40 years.

This influx of new residents is being driven by varied factors resulting in a diverse demographic of new renters, but with a common need and desire. Renters want the feel of a home and the amenities that empower them to enjoy the perks of modern apartment living.

Among the new renters are those selecting Las Vegas for its strong job market, business- and high tech-friendly environment for company relocation and entrepreneurial development, and quality of life and lower cost of living that is attractive to retirees, millennials and Gen X. In addition, as a premier tourist destination, rental units are also becoming second homes.

Multiplying the need for more amenity-rich apartment options, many of these factors also apply to longtime Las Vegans who are opting to cash out on their single-family homes and are choosing a new lifestyle devoid of high-maintenance homes.

Further exploring Las Vegas’ new breed of renters, Southern Nevada is becoming the poster child for the “lifestyle renter” trend among millennials, Gen X and empty nesters, who are adopting a more experiential lifestyle and are willing to postpone or abandon homeownership in exchange for the flexibility and benefits of high-end amenity-rich rental properties. These renters typically have above-average incomes and prefer to rent in upscale communities instead of saving for a down payment or dealing with homeownership expenses and maintenance.

Ovation will open two market-rate, amenity-rich apartment communities by year end. In our 2024 pipeline are two additional market-rate communities and Ovation has a senior-affordable housing project under construction that will open in 2025.

In other words, we are not slowing down.

Ovation continues its fast pace of development to help meet growing demand for multifamily housing. As Las Vegas looks forward to the addition of several thousand new rental units, we at Ovation will continue to build on our years of experience in developing dozens of amenity-rich, multifamily apartment complexes — both market-rate and affordable.

Jess Molasky is the principal and project manager for Ovation Development Corp.

Don't miss the big stories. Like us on Facebook.
THE LATEST
How to better serve Gen Z and millennial homebuyers

Rapid surge in property values has introduced affordability hurdles for many millennials, those born between 1981 and 1996, and Gen Z individuals, those born between 1997 and 2012, making the dream of homeownership intangible. Therefore, understanding how to provide support to these buyers has become increasingly important.

Cultivating a vibrant real estate company culture

In the dynamic world of real estate, success is often measured in numbers — deals closed, properties sold, profits made. But beneath the surface of these metrics lies a vital force that drives a company’s true achievements — its culture.

What’s the difference between real estate agent and Realtor?

Lately with the real estate market being so hectic with inventory down and interest rates up clients — both buyers and sellers — have asked me what is the difference between a Realtor and someone else who also has a real estate license but they are just a real estate agent.

What owners, agents should look for in home inspections

A home inspection is a crucial step in the process of buying or selling a property. For both real estate agents and homeowners, understanding what to look for in a home inspection is essential to ensure a smooth transaction and make informed decisions.

Four proven strategies for finding off-market inventory

“Off-market listings” or “quiet listings” are homes that are for sale but aren’t listed on multiple listing services.

Will normal real estate inventory levels return?

The real estate market is experiencing unprecedented dynamics, raising questions about the possibility of returning to normal levels of inventory.

Borrowing from your home equity? Avoid these top 5 mistakes

Borrowing on home equity can be advantageous to many homeowners, but following these main tips and conducting your own research will help avoid any pitfalls in the process.

Summer weatherization tips to keep things cool

We all know that out here in the desert climate, air conditioning is essential; but, with rising costs of seemingly everything these days, there are other ways homeowners can keep their house cool and comfortable and make sure the AC unit isn’t working overtime.

Summer weatherization tips to keep things cool

We all know that out here in the desert climate, air conditioning is essential; but, with rising costs of seemingly everything these days, there are other ways homeowners can keep their house cool and comfortable and make sure the AC unit isn’t working overtime.

Unlicensed contractor complaints on solar and pool projects rise

The Nevada State Contractors Board also sees a significant number of complaints being filed when work performed by unlicensed contractors leaves homeowners with poor workmanship, incomplete projects or no work performed at all.