Las Vegas Transaction Volumes Fall Drastically

Investment activity in the Las Vegas apartment sector has fallen dramatically during the COVID-19 pandemic. In early 2021, the value of annual apartment transactions in Las Vegas totaled $706 million, according to property sales figures provided by Real Capital Analytics (RCA). That activity is the market’s lowest annual reading since early 2013 and is well below the $4 billion in transactions Las Vegas was enjoying in late 2019, before the pandemic-induced recession took hold of the nation. This dramatic slowdown in investment activity has resulted in lower pricing for apartments. RCA reports the typical apartment sales price in Las Vegas at $137,000 a door, well below the U.S. average of $181,000. Leading up to the pandemic, local pricing did a good job in closing the gap with the national norm. However, the average sales price in Las Vegas has fallen some $35,000 to $40,000 over the past year, resulting in sizable discounting once again.