Page 5 - 2016 Las Vegas Residential Real Estate Report

REVIEW
So while Las Vegas has been criticized in the past for not reaching some of the aesthetic characteristics of a mature global city, like a tall skyline, performing arts and intellectual pursuits, the area has grown dramatically in this regard
in the past several decades, with more than 40 structures exceeding 30 stories. Las Vegas has the classy Smith Center for the Performing Arts, which hosts the Nevada Ballet Theatre, The Las Vegas Philharmonic, Cabaret Jazz and many other visiting performers and speakers. In education, the young William S. Boyd School of Law is already ranking within the top 100 accredited law schools.2
The region’s education options also expanded recently with Roseman University of Health Sciences establishing campuses in Las Vegas and Henderson. UNLV School of Medicine is also making strides, receiving preliminary accreditation in October.3
One of the biggest stories of 2016 is Las Vegas as a host to major sports teams. Las Vegas is now
the home of an NHL franchise, the Golden Knights. Championed by businessman Bill Foley, the Golden Knights will play at T-Mobile Arena, the recently built showplace that also hosted major events in 2016 such as the iHeart Radio Music Festival. As
if an NHL franchise wasn’t impressive enough,
the Oakland Raiders of the NFL announced their interest in moving to Las Vegas. While the proposed stadium has in uential backers, it will be up to
a three-fourths vote of NFL owners to allow the move. In our minds, with a region already famous for merchandising, we believe professional sports teams and Las Vegas will expand their brands together in a remarkable way.
Clearly Las Vegas has an established global identity but outside of the Strip, a lot of changes are occurring which will likely resonate regionally, nationally and internationally.
REGIONAL ECONOMY
THE ENGINE THAT DRIVES HOUSING DEMANDS
In 2016 we reached several major waypoints of economic growth. In May 2016, the employment level nally surpassed the highest pre-recession employment level of 937,000 established in 2007. Nearly 10,000 more jobs were added between May and November 2016, surpassing all prior high marks. This is certainly supportive of the housing market but a lot of work remains
before unemployment levels are reduced to pre-recession levels, particularly as more people may be encouraged to re-enter the labor force. Also, average weekly wages are 14 percent below the 2007 maximum, on an in ation-adjusted basis.4
Accompanying gains in the employment level, population continues to grow meaningfully, however not with the same trajectory that was traced in the late 1990s or early 2000s but is still within the top 20 fastest growing metropolitan areas.5
ACCOMPANYING GAINS
IN THE EMPLOYMENT LEVEL, POPULATION CONTINUES
TO GROW MEANINGFULLY
Although employment and household formation of working households is the most important fundamental force for household demand, retirement and second homes, often part of
sun belt migration, are major drivers of demand for housing in the region.
Examining Census Bureau data, U.S. population growth is at the lowest point since the Depression but several Western states including the Sun
Belt states of Texas, Nevada and Arizona, have a positive net migration as individuals move from the snow belt to the sun belt. Nevada also continues to be the recipient of California out ows.6
1. https://www.brookings.edu/blog/the-avenue/2013/06/24/global-cities-introducing-the- 10-traits-of-globally- uent-metro-areas/
2. https://www.unlv.edu/news/release/boyd-law-school-achieves-its-highest-us-news- world-report-ranking
3. http://www.reviewjournal.com/life/health/local-of cials-excited-about-development-unlv- school-medicine-medical-district
4. http://thestatpack.com/blogs/thestatpack/las-vegas-metro-trends-mostly-positive/
5. http://www.forbes.com/sites/erincarlyle/2016/03/08/americas-fastest-growing- cities-2016/#44ce31837056
6. https://www.brookings.edu/blog/the-avenue/2016/12/23/u-s-growth-rate-hits-new- low-as-migration-to-the-sun-belt-continues/
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