Become a Member
  Business Partner Directory
  Career Center (Coming Soon!)

The Home Front Multifamily Housing Growth Poised to Continue in 2013

Published Wednesday, February 27, 2013
by Robert Dietz


As a result of the housing crisis, homeownership is down, particularly among younger households. In addition, the overall number of households -- homeowners and renters combined -- is down compared to where it should be given the population growth.

This trend has translated into a lot of potential in household formation -- as many as two million future households according to some estimates, with most of them expected to become renters as economic and labor market conditions improve.

The result for the building industry has been an increase in the demand for rental units, which in turn has reduced rental vacancy rates and driven demand for multifamily construction.

For example, the number of empty rental units shrunk greatly in the last two years according to the Census Bureau's quarterly Housing Vacancy Survey. Peaking at just over 11 percent, the current measure stands at 8.7 percent as of the end of 2012, comparable to levels seen in early 2002.


With fewer units available for a growing number of renters, 2012 marked significant growth in multifamily construction. The graph below charts multifamily units started on a smoothed, three-month moving average. After falling to a low of 75,000 units a year in late 2009 (a greater than 75 percent drop in activity from the peak of the market), new construction now comes in at a 306,000 rate on an annualized basis, a 49 percent improvement year-over-year.

And this growth should continue. Survey data of multifamily developers, as reported by the National Association of Home Builders (NAHB) Multifamily Production Index (MPI), suggests more businesses seeing positive market conditions. The most recent reading of the MPI was 52, with any reading above 50 indicating more developers seeing an improving environment. The MPI has been above 50 for three straight quarters as of the third quarter of 2012.

The NAHB Economics forecast for multifamily construction projects another strong annual increase in 2013. Multifamily starts should increase another 31 percent over 2012 to 335,000 total units for the year. And like growth in other parts of the housing sector, this additional development activity should add jobs to the construction sector, about 1,110 jobs for every 1,000 multifamily units built according to industry estimates.

Wild cards in the multifamily forecast could be the fate of various policy issues. For example, the future of the Low-Income Housing Tax Credit could be affected by tax reform. The tax credit is a major development tool that ensures the financing of affordable housing and supports about 95,000 jobs annually.

The tax treatment of carried interest is also under debate. While typically associated with financial interests and fund managers, a carried interest is a common and important mechanism in the real estate industry to attract investment, allocate business risk, and align the interests of developers and investors. Increasing the tax rate on carried interests for real estate would reduce the rate of multifamily construction going forward.

Robert Dietz
is an economist with the National Association of Home Builders (NAHB). Previously an economist with the Congressional Joint Committee on Taxation, Robert writes on housing and policy issues at NAHB's economics blog Eye on Housing. Follow Robert on Twitter at @dietz_econ. The information presented here does not necessarily represent the views of NAHB or its membership.




Upcoming Events

Vinyl @ The Hard Rock Hotel & Casino
4455 Paradise Road, Las Vegas, Nevada
October 7, 2015 | 4:30p - 8:00p
Belfor Facility
Reno, Nevada
October 16, 2015 | 10:00a - 5:00p
Sahara West Library
9600 West Sahara Avenue
Las Vegas, Nevada
October 21, 2015 | 11:00a - 3:30p
Regional Public Safety Training Center
5190 Spectrum Boulevard
Reno, NV
October 22, 2015 | 8:00a - 5:00p
Sports Center of Las Vegas
Las Vegas, Nevada
October 23, 2015 | 10:00a - 5:00p
NVSAA Training Center
Las Vegas, Nevada
October 28, 2015 | 8:00a - 4:30p &
October 29, 2015 | 8:00a - 4:30p
EDUCATION:  Bed Bugs Class (more info to follow)
The Orleans Hotel & Casino
Las Vegas, Nevada
November 6, 2015 | 1:00p - 4:00p
Las Vegas Police Department
Las Vegas, Nevada
November 18, 2015 | 8:00a - 5:00p
NVSAA Training Center
Las Vegas, Nevada
December 3, 2015 | 8:00a - 4:30p &
December 4, 2015 | 8:00a - 4:30p
Rio All-Suites Hotel & Casino
Las Vegas, Nevada
December 12, 2015 | 5:30p - 11:00p

Latest News

Published Tuesday, September 1, 2015

Exciting Times for NVSAA! 
Introducing Our New Billing Structure


This is a very exciting time for us! We are offering more opportunities for our members than ever in key areas: Education, Legislative, Networking.

We are also creating ways to do business better. This allows us to build upon our foundation, and facilitate future growth.

The Nevada State Apartment Association is pleased to announce a streamlined billing structure for our membership. We are moving to a calendar year membership cycle where all members will pay their dues in January and enjoy membership benefits through December of that year.

The goal is to shift our entire membership to this more efficient billing cycle by January 1, 2017.

As such, it’s important to begin the process now. Handling membership in this manner is in line with many other Associations across the country and is design designed to minimize confusion on expiration dates and make the budgeting process easier.

Our goal is to make the transition as easy as possible:

If your membership renewal falls due between September 1, 2015 and December 31, 2015. You will receive an invoice that includes the remaining months of 2015 and all of 2016. Conveniently, your membership will be paid through the end of 2016. The remaining association members expiring in 2016 will receive prorated invoices to finish out next year’s membership. This process puts us on track to begin annual billing for the association, as a whole, in 2017.

Thank you for your cooperation as we make these changes! YOU are what makes the NVSAA the premier multi-family housing association in the region. Let’s keep going and growing!

If you have questions, you can reach me at 702.862.0165

My best to you,

Shelly A. Cochran

Executive Director


Published Friday, April 17, 2015

Record-setting tourism and the strongest convention attendance in several years are driving employment growth and creating apartment demand Las Vegas. Job growth is well above the national average, spurring developers to complete projects that were mothballed since the recession. In addition, multifamily permitting is trending more than 60 percent higher as builders rush to keep up with demand for rental space. While more than 1,400 apartments have been completed during the past year, vacancy fell sharply and concession activity nearly halted on well-located properties near employment hubs. The leisure and hospitality sector is providing the biggest job gains in the economy, although more corporations are relocating to the metro due to its position as a travel destination and the lack of a state income tax. The new workers hired by these companies are choosing to rent in prime areas to the southwest of the city, close to shopping centers, freeways and the Strip. Single-family housing costs in these areas are above the metro average, spurring strong rental growth and pushing vacancy down. Tightening operations will lift rents up 3.4 percent this year, more than 100 basis points above inflation.

Published Wednesday, February 25, 2015

You can be THE FIRST to know what's happening in the Las Vegas housing market each and every month. FastFacts is the e-newsletter that tells you exactly what's going on in both the new and existing home market in terms of volume, prices, and trends.

Published Tuesday, February 24, 2015

I think it's fascinating how consumer-to-business connections change over time ... and I'm always paying attention.

Current Legislative News

Published Friday, January 24, 2014
Published Wednesday, March 13, 2013
Published Wednesday, March 13, 2013

NVSAA Platinum Sponsors

Please Join the NVSAA and Thank Our Platinum Sponsors Below


Address 9011 West Sahara Avenue, Suite #150 | Las Vegas, Nevada | 89117
Phone 702.436.7662 | eFax 702.446.8445 | Email

All website content is Copyright © 2015 Nevada State Apartment Association. All rights reserved.

Proud Affiliate and State Charter of the National Apartment Association.