28 June 2023
Apartment renters in Las Vegas are currently enjoying the upper hand, with landlords offering enticing perks such as free rent, event hosting, and reduced rents. The city has seen a decrease of 2.2% in rental rates during the first quarter of this year. Similar trends are observed in Sunbelt cities like Phoenix and Atlanta. The surge in multifamily construction, fueled by low interest rates and high rental demand, is now facing a downfall as interest rates rise and economic viability diminishes. The government’s intervention during the pandemic, including shutdowns, zero interest rate policies, and fiscal stimulus, has contributed to the current state of the apartment market. The Austrian business cycle theory suggests that government intervention and subsequent market adjustments are to blame for the ongoing apartment sector depression.