National Multifamily Trends — How They Affect All Asset Classes in Las Vegas

📉 National Multifamily Trends — How They Affect All Asset Classes in Las Vegas

Dear Investors,

As we move through the second half of 2025, the latest data from Yardi Matrix paints a clearer picture of what’s ahead for the multifamily sector nationwide — and what it means for us here in Las Vegas.

This year’s story is all about balance: between supply and demand, rent growth and affordability, and strategy versus timing. For Las Vegas investors, now is a moment to take stock, stay tactical, and position for long-term success.

🌡 Multifamily Rent Growth Is Cooling — But Not Collapsing

Nationally, advertised multifamily rent growth is softening — up just 1.2% in the first half of the year, with full-year growth likely to remain under 2% . Las Vegas, which rode the wave of aggressive rent spikes in 2021–2022, is now experiencing a modest correction: rents are down 1.1% year-over-year and projected to finish 2025 slightly negative at -0.4% .

But this trend isn’t impacting all asset classes equally.

🏢 Class B and C Assets Showing Resilience

Higher-end “Lifestyle” Class A assets — typically newer, luxury-oriented communities — are facing the brunt of the pressure. These properties are more exposed to lease-up competition and rent elasticity, especially in oversupplied submarkets.

Class B and C properties, however, are showing greater rent stability and consistent occupancy. That’s because these assets cater to renters by necessity — working-class households, service industry employees, and fixed-income tenants — many of whom are priced out of the for-sale market and even Class A rentals.

In Las Vegas, this segment of the market continues to benefit from:

• Limited new Class B/C development (most new supply is luxury)
  
  
• Consistent demand driven by affordability
  
  
• Downward migration from renters trading down from higher-priced units
  
  

In short, Class B and C properties are less exposed to supply-driven rent compression and are often positioned to outperform in flatter or declining rent environments.

🏘️ SFR Portfolios: A Strategic Hedge Against Multifamily Headwinds

While traditional multifamily rent growth cools, single-family rental (SFR) portfolios are quietly outperforming. In Las Vegas, SFR rents are up 1.3% year-over-year, and national occupancy remains healthy near 94.9% .

Why does this matter?

• SFR demand is structurally strong: It caters to families seeking more space and privacy who can’t afford to buy.
  
  
• There’s very little new SFR supply compared to multifamily.
  
  
• Institutional capital is actively expanding in this segment, signaling confidence in long-term performance.
  
  

For multifamily investors looking to diversify, building or acquiring a portfolio of BTR (build-to-rent) product in the Las Vegas Valley can provide insulation against urban Class A oversupply while benefiting from renter demand that’s shifting toward suburban and family-friendly options.

📦 Supply Matters — And Vegas Is Still Absorbing

Las Vegas added nearly 5% to its multifamily inventory in the past few years. In 2025, 4,804 more units are expected to deliver, or 2.5% of the market’s stock . That’s a significant amount of new supply in a short time, and it will continue to weigh on Class A performance.

Yet demand remains steady, especially in the affordable and mid-tier segments. Investors who target Class B/C assets or SFRs are better positioned to capture durable income during this period of rebalancing.

💼 Strategic Recommendations for Investors

Here’s how we’re advising clients in today’s environment:

✔ Focus on asset class segmentation — Favor Class B and C properties in high-occupancy submarkets with limited direct competition.

✔ Be patient but proactive — Use this cooling period to buy assets below replacement cost with room to renovate or reposition.

✔ Explore SFR and BTR — Build-to-rent is emerging as a long-term outperformer. Consider adding or scaling SFR portfolios as a hedge.

✔ Track supply timelines — Construction starts are falling sharply. Deliveries will slow beginning in 2026, setting up the next rent growth cycle by 2027–2028 .

🧭 Final Takeaway: Timing and Asset Selection Will Define Success

The Las Vegas multifamily market isn’t broken — it’s simply adjusting after several years of rapid growth and heavy supply. Class B and C properties continue to offer dependable returns, while SFR portfolios provide a forward-looking way to stay ahead of evolving renter preferences.

If you’d like to explore specific submarkets, Class B/C opportunities, or new SFR strategies across the Vegas Valley, we’d be happy to share insights tailored to your portfolio.

Best regards,

Catherine Hyde

HYDE Real Estate Group

www.hyderealestate.com