In 2009, media outlets confidently declared that the Great Recession destroyed the American dream in our nation’s silver state. Headlines graced front pages with descriptions of vast foreclosures, plummeting employment rates, and stalled construction. Tourism and gaming took significant losses, tightening budgets throughout Las Vegas. As the years passed, gradually and fortunately, Nevada overcame the Great Recession and the economic growth continues to progress.
The shift in economic conditions is creating a boom in the overall construction industry. New
Employment is projected to rise as Southern and Northern Nevada take on an increasing number of construction projects in trade/transportation/utilities, business services, healthcare, and leisure/hospitality. The healthcare
No other state’s real estate market was as negatively impacted by the recession as Nevada. Nevada’s foreclosure rate was the highest in the country, peaking around 10 percent in 2009. Despite the crash, Southern Nevada’s housing market has made a steady recovery supported by seven consecutive years of rising housing prices. As of July 2017, Nevada’s foreclosure filling’s are at 1 in every 1,095, as compared to 1 in 10 of 2009. Home prices are becoming increasingly affordable in Northern and Southern Nevada. As of October 2016, the median price of a Reno-Sparks home was $306,000 compared to $233,250 in the Las Vegas Valley. Nevada’s housing market continues to progress, giving potential residents a rewarding future in a growing number of industries
2016 brought in a staggering 42.9 million visitors to the Las Vegas Strip. The rise in tourism (from 39.1 million in 2007) can be attributed to the vast number of new developments and renovations such as The Linq, TMobile Arena, and The Park. According to Nevada’s Gaming Control Board, gaming isn’t the strip’s sales driving force it once was. The slight decline in gaming hasn’t affected the 35.5 billion dollars in tourist revenue in 2016. These numbers show that Las Vegas is attracting people of diverse interests apart from just gaming. While tourism and hospitality remain Nevada’s bread and butter, industries such as marijuana, technology, and construction are diversifying its economy.
In the first four days of legal recreational marijuana, Nevada brought in $3 million dollars in sales, according to the Nevada Dispensary Association. These numbers translate to $750,000 per day and $125,000 in state taxes. The sales are projected to grow if Nevada models the successful structures of Colorado and Oregon. If marijuana continues to trend, Nevada is expected to generate $500 million dollars in sales over the next two years with $110 million dollars in tax revenue. 3,298 full-time jobs are expected to come out of the crop by 2020.
In Northern Nevada, the economy is shifting from a tourism centered industry to technology. Northern Nevada is on its way toward a technology powerhouse with the Tesla Gigafactory, which is expected to create 500,000 electric vehicles by 2020. In addition to Tesla, Apple just recently announced its plans to for a $1 billion dollar expansion in Reno. This new expansion will house the company’s data center. The up and coming data centers will establish Nevada residency alongside Switch, a global technology solutions corporation. Switch currently has five data center locations, with two of which located in Reno and Las Vegas. Nevada’s climate makes for the perfect home for data centers, considering its lack of natural disasters and moderate temperature. Climate, low energy
Nevada’s economy is diversifying as it continues to grow beyond its roots of hospitality and gaming. The number of visitors and revenue Nevada brings in are clear indicators that people take interest in coming for reasons beyond slot machines and hotels. Technology, cash