Why Las Vegas Multifamily Investments Could Surge in 2025: Migration & Affordability Trends

Why Las Vegas Multifamily Investments Could Surge in 2025: Migration & Affordability Trends

Las Vegas is positioned for a strong rebound in its multifamily housing market in 2025, thanks to migration trends and affordability advantages. According to Marcus & Millichap’s 2025 National Investment Forecast, decreasing rents across the Sunbelt region are expected to attract new residents, leading to lower vacancy rates and increased demand in key markets—including Las Vegas.

For investors and property owners, understanding how these trends will impact rent growth, absorption rates, and investment potential will be crucial in 2025.

Why Las Vegas’ Multifamily Market is Set to Rebound

1. Migration Trends: A Key Demand Driver

🏡 California Out-Migration Continues – As Los Angeles and San Diego residents relocate to escape high costs and housing shortages, Las Vegas continues to be a top relocation destination.

🔥 Affordability Over Wildfires & High Living Costs – Many California residents are moving not just for cost savings, but also to escape environmental risks like wildfires.

📈 Household Expansion Fuels Demand – Population growth in Las Vegas is expected to support multifamily absorption, reducing vacancy rates over the next five years.

2. Affordability: Las Vegas vs. Other Major Cities

The Sunbelt region continues to be a cost-of-living leader, with two-thirds of its metros offering rents below the national median ($1,830/month).

How does Las Vegas compare?

City Average Rent (2024) Cost of Living Index

Las Vegas $1,600 - $1,800 Low

Los Angeles $2,500 - $3,500 High

San Diego $2,800 - $3,600 High

🔹 Why This Matters:

Las Vegas offers better affordability while maintaining strong employment opportunities and quality of life, making it a top choice for migrating residents and investors.

📌 Source: LivingCost.org – Las Vegas vs. Los Angeles

3. Vacancy Rates Expected to Decline

Las Vegas’ current vacancy rates are 70-200 basis points above historical averages, but several factors could lead to compression:

✅ Steady population growth supporting rental demand

✅ Limited new apartment supply compared to past years

✅ High absorption rates in affordable submarkets

💡 Investor Insight: Lower vacancy rates mean rising occupancy, rent growth, and increased property values—a win-win for multifamily investors.

What This Means for Investors

🔹 Fewer New Apartment Developments = Less Competition

Unlike some Sunbelt cities facing oversupply, Las Vegas has a balanced inventory growth rate, which prevents rent stagnation.

🔹 Higher Rents & Better Returns

With moderate inventory growth and strong demand, Las Vegas investors could see improved cash flow and appreciation in 2025.

🔹 Employment Growth Strengthens Rental Demand

Las Vegas’ tourism, tech, and logistics sectors continue to drive job creation, further fueling rental demand.

📌 Market Outlook: Las Vegas is emerging as a standout multifamily market in the Sunbelt for 2025 and beyond.

2025 Investment Outlook: A Strong Market for Growth

Las Vegas’ rental market dynamics create favorable conditions for:

🏠 Multifamily investors seeking high-demand properties

🏡 New landlords looking to capitalize on rent growth

📊 1031 exchange investors reinvesting in tax-efficient opportunities

🚀 Ready to invest? Now is the time to explore high-demand properties before vacancy rates tighten further.

📌 Read More: GlobeSt – 2025 Sunbelt Multifamily Forecast

Frequently Asked Questions (FAQs)

1. Why is Las Vegas a top market for multifamily investment in 2025?

Las Vegas combines affordability, strong migration trends, and employment growth, creating a favorable environment for rental property investors.

2. How do vacancy rates impact rental property owners?

Lower vacancy rates mean higher occupancy, stronger rental demand, and potential rent increases—all of which improve investor returns.

3. What is driving people to relocate to Las Vegas?

High-cost cities like Los Angeles and San Diego are pushing residents out due to expensive housing, environmental risks, and tax burdens. Las Vegas offers a lower cost of living and job opportunities.

4. Will rent prices increase in Las Vegas in 2025?

With limited new apartment construction and growing demand, rents are expected to rise modestly, benefiting multifamily investors.

5. How does Las Vegas compare to other Sunbelt cities for investment?

Las Vegas has lower rent saturation, balanced inventory growth, and a more affordable housing market compared to oversupplied metros.

6. What types of rental properties offer the best investment potential in 2025?

Multifamily properties in high-demand areas with strong employment growth will likely yield the best returns.

Final Thoughts: Why Now is the Time to Watch Las Vegas’ Multifamily Market

With affordability advantages, rising demand, and limited new construction, Las Vegas is poised for a multifamily resurgence in 2025. Investors who move early could benefit from:

✅ Lower vacancy rates & stable rent growth

✅ Steady migration trends supporting rental demand

✅ Attractive investment opportunities compared to pricier Sunbelt metros

📢 Considering an investment in Las Vegas multifamily properties? Now is the time to position yourself ahead of the 2025 market shift.

🔗 Read More: GlobeSt – 2025 Sunbelt Multifamily Forecast