As Nevada’s economy continues to improve, the Las Vegas valley’s population of roughly 2 million is said to jump to 3 million by 2024. While hospitality remains Las Vegas's number one industry, construction is the second-fastest growing, so it is no surprise that future residents are migrating for purposes of employment and economic opportunity. Once known for slots and hotels, Southern Nevada was mainly dependent on tourists seeking gaming thrills. Over the years, Las Vegas has progressed into a diverse city of all-star resident entertainers, a newly renovated downtown and now, two professional sports teams. 2016 brought in a staggering 42.9 million visitors to Las Vegas and the number is expected to rise with the multitude of future construction projects in store.
Construction is Las Vegas's second-fastest growing industry as it usually dependent on the growth of a primary industry. Southern Nevada has an estimated 15 billion worth of construction projects in the pipeline and in progress. Construction job growth is the second largest according to Nevada Department of Employment and is expected to grow 19.5% in the next two years. The development of future construction creates a huge demand for workers, which particularly presents a worry for the 1.4 billion dollar expansion and renovation for the Las Vegas Convention Center. If Las Vegas can focus on job training and wage increases, job shortages should not be a problem for the Las Vegas Convention Center and other numerous construction projects underway and scheduled.
Some other future and current construction developments include:
- Resorts World- a modern Chinese-themed resort estimated to cost 4 billion
- Wynn Paradise Park- a 20-acre lagoon featuring 4,000-foot boardwalk with white-sand beaches and watersports and attractions, bar, food service
- Hyperloop One- airline speed transportation powered by electromagnetic levitated pods through low-pressure tube. Its test track is located in the Nevada desert. Hyperloop One recently announced its decision to build its first transportation system in the Middle East.
- Apex Industrial Park- an industrial park of North Las Vegas, set to be the premier location for businesses and industries including: commercial, warehousing and distribution, recycling, outside storage and renewable energy developments.
- Raiders Stadium- a 1.9 billion, 65, 000-square-foot stadium set to be home to the future NFL’s Raiders, which will additionally host future concerts, UNLV events, soccer and motorsports. These events are projected to contribute 620 million to the Las Vegas economy. The stadium is conveniently located a few minutes from the Las Vegas strip off Interstate 15 near Russell and Hacienda Avenue.
- Test site for autonomous aircraft- the Federal Aviation Administration announced Nevada as one of six test sites for autonomous aircrafts or drones.
The boom of Las Vegas construction and incoming future residents will consequently further the development of Las Vegas roads. According to the Nevada Department of Transportation (NDOT), future projects include:
- Project Neon- a high-occupancy vehicle (HOV) flyover bridge from southbound U.S. 95 to southbound Interstate 15.
- Centennial Bowl-a project in progress connecting U.S. 95 and the 215 Beltway in the northwest valley.
- Interchange project at I-15 and Starr Avenue- a project that will provide easier highway access for Southern Highland residents.
- Interchange project of I-15 and Tropicana Avenue -a transformation of this interchange will provide better access to and from the highway.
- S. 93 -the NDOT plans to widen the two lanes in each direction, which will improve transportation for driver to and from Apex Industrial Park in North Las Vegas.
- State Route 160 -a 6 mile stretch connecting Las Vegas to Pahrump that will widen from two to four lanes starting in 2018.
Construction will have a significant impact on the Las Vegas housing market and overall economics. Thousands of residents are expected to pour into the valley, creating a demand for affordable housing. The future Las Vegas Raiders are expected to bring flocks of people from California, with an interest in purchasing property in Las Vegas and Henderson. It is likely that housing prices may spike considerably after the stadium’s completion, making now the best time to invest in real estate.
Statistics show that large construction projects significantly increase property value. According to the Bureau of Labor, 6.4 million Americans were employed in the construction industry in early 2017. As construction developments rise, so does the demand for real estate. The Bureau also reported an employment spike in the real estate industry, which climbed from 1.51 million in 2016 to 1.57 million in one year. These numbers suggest that there is a clear correlation between construction developments and housing. Statistics also show that larger construction projects, such as stadiums have a significantly higher impact on property value. Consider the neighborhoods around the nation’s pro football stadiums. Of the 31 neighborhoods, nearly two thirds have higher housing values than houses in non-stadium neighborhoods. New stadiums builds –on average, have premiums ranging between three to fifteen percent, according to the Real Estate Investment Network (REIN).
From technology test sites, a massive sports stadium, to eye-catching additions to the strip, Southern Nevada is progressively developing into a city of economic diversity and culture. Within the next five years, it is also likely that Nevada will grow in sectors such as water technology, renewable energy and information technology. These sectors along with our current construction projects, will boost tourism, create a demand for skilled workers, and strengthen the valley as a whole.