Luxury Living Taking Off With Renters and Shifting Market
Ariva Luxury Residences is all about lifestyle. Residents at the new, nine-building apartment complex in Las Vegas just have to walk over to its three clubhouses if they want to exercise in an open-air fitness center or yoga room, play foosball inside or relax in a grassy area filled with cozy seating and a fire pit.
Or, if residents prefer to stay closer to home, they can hang out at the outdoor lounge of their own building—maybe have a meal at one of the tables or watch a game on the big-screen TV.
“It is impossible to wake up in a bad mood,” said Anasthasia Purifoy, an Ariva resident and senior property manager at Cushman & Wakefield, which manages and operates the property.
Ariva, which is still under partial construction with anticipated completion by the end of August, recently held its grand opening. Rent averages $1,800 to $3,900 a month, though penthouse residents pay closer to $4,000 or $5,000, said Heidi Westerhoff, senior director of asset services at Cushman & Wakefield.
The property’s more than 100 residents value the amenities that Ariva has to offer.
They’re not alone.
People seem increasingly likely to sacrifice square footage for better amenities and luxury finishes, said Zar Zanganeh, managing partner in Nevada for the Agency, a global real estate brokerage. Zanganeh sells high-end properties and represents developers in new construction projects.
“So, the size of the units, whether it’s luxury condominiums for sale, homes for sale or apartments—the unit sizes people are willing to sacrifice … for getting more amenities,” Zanganeh said.
Bowling alleys, game rooms, valet trash and luxury, in-unit appliances are just some of the amenities that justify higher rent for a smaller apartment, he said.
Las Vegas wants luxury properties like Ariva, Westerhoff emphasized, and comfortable apartments are an appealing option for people who are waiting to buy or build homes until the economy regains some stability, she said.
High-end real estate isn’t slowing down, Zanganeh agreed, pointing to the popularity of homes priced upwards of $5 million or even $10 million. “I don’t see it going backwards,” he said of Las Vegas’ home market, noting that rent prices will likely remain steady, despite going up about 30% in the past five years. “We definitely don’t have any anticipation of that, regardless of what happens with our economy; regardless of a recession or not.”
Thousands of apartment units have been added in Las Vegas since last year, Westerhoff said, and mixed-use communities are only getting “bigger and better,” as Las Vegas’ population and infrastructure grows to support them and the lifestyle that properties like Ariva seek to create.
According to Zanganeh, however, the majority of clientele for luxury real estate are probably out-of-state buyers. Las Vegas’ population is growing, and Zanganeh said the city has been an especially attractive destination for transplants from California.
The result is a huge demand that “we’re not able to keep up with,” he said. When people visit and see the vast, undeveloped desert surrounding it, Zanganeh said, their impression might be that it has abundant opportunity for growth.
“They don’t realize that Nevada, of all 50 states, has the least amount of privately owned land, the most amount of federal land and—after all—we’re in this little valley that is 96%-plus built out,” he said. “And there’s very little room for us to grow.”
As a result, Zanganeh predicts the working class will be unable to find local, affordable housing “in the very near future.” The only housing in their price range will be older properties in less desirable areas, condominiums for purchase or—if they want a nice, newer home—moving to nearby cities like Pahrump or Coyote Springs and commuting to work.
There are few model homes in local housing tracts in the $300,000 to $400,000 price range, he said. Most are closer to $600,000 or $700,000 and, before long, the Valley will price out.
“It already has,” Zanganeh said. “If you walk around and look at any of the new development and housing tracts … there’s [none] in the price point of your average employees on the Las Vegas Strip, or the average Las Vegas income.”