According to Multi-Housing News, “On an annual basis through December, rents increased by double-digit percentages in 26 of the top 30 metros, six of which posted gains of 20 percent or more: Phoenix (25.3 percent), Tampa (24.6 percent), Miami (23.5 percent), Orlando (22.7 percent), Las Vegas (22.2 percent) and Austin (20.9 percent).”
So with rents rising and cheap money flowing, the prices of apartment projects are soaring. The latest Las Vegas multifamily announced sale is Ideal Capital Group’s purchase of the 287-unit Jade project near the Rio hotel and casino for $124.5 million. That is a whopping $433,798 per unit.
The covid shutdown in 2020 slowed project sales as many renters lost their jobs. But “Las Vegas’ rental market has since heated up with fast-rising rents and shrunken availability, in part as people sought more space amid widespread work-from-home arrangements, and investor sales have rebounded,” reports Eli Segall for the Las Vegas Review-Journal.
Jade went for double 2021’s average sales price per unit, $215,151. Average apartment sales per unit have risen over 460 percent, from $38,219 in 2011 to last year’s price.
Wolf Richter writes on his site, wolfstreet.com, that working people are harmed by inflation because their wages never catch up, while people with assets, inflated in value by low interest rates, reap the benefit. He writes, “[T]he wealth of the wealthiest 1% of households spiked, creating the biggest and worst wealth disparity ever to the bottom 50% and even to the bottom 99%, based on the Fed’s own wealth distribution data.”
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