The second quarter of 2021 saw unprecedented rental growth in Las Vegas, with the rate rising 1.7% on a three-month rolling basis to June, to reach $ 1,278. On an annual basis, rents jumped 14.6%. The combination of a rapidly expanding population and limited supply pushed the occupancy rate of stabilized properties up 110 basis points in the 12 months ending May, to 96.0%, indicating demand sustained, especially for Lifestyle units.
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The unemployment rate improved to 8.9% in May, according to preliminary data from the Bureau of Labor Statistics, behind the national rate of 5.8%. The job market contracted 4.4 percent in the 12 months ending in May, topped by the national rate of -1.9 percent. Yet, with the economy reopening, Las Vegas is rebounding: leisure and hospitality grew 70.4% year-on-year through May, creating 89,400 jobs. Visitor volume followed an upward trend, with hotels and casinos opening at full capacity in June. Resorts World Las Vegas also opened to the public in June.
Investment sales rebounded, having already surpassed total transactions for 2020 in the first half of the year, totaling $ 1.4 billion. With real estate values âârising, companies on both sides of the deal will likely re-evaluate their positions.
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