Report: Wealthy Nevadans more upbeat on economy

Compared to their neighbors in lower income brackets, wealthy Nevadans are more optimistic that the local economy is heading in the right direction, according to Nevada State Bank’s most recent “High Net Worth Report.”

Published monthly by the Private Bank, the report is built from a survey of high net worth Nevadans and their thoughts about the state’s economy following the recession and how it affected their households.

Statewide, the survey found that 6 out of 10 wealthy Nevadans — or about 59 percent — believed the local economy improved in the last year. Meanwhile, in Southern Nevada, nearly 4 out of 10 residents — or about 38 percent — believed the economy had improved, according to data collected in the Las Vegas Perspective.

“The Great Recession has impacted all households in Nevada, but high net worth households have a unique perspective of the continuing recovery in the Silver State. Nearly every sector of the Nevada economy expanded during the past year,” said Randy Boesch, Private Bank’s executive vice president, in a statement, “and nearly three-quarters of wealthy households anticipate longer-run growth.”

The report says Nevada’s overall economy grew 2.4 percent during 2013 while the mining industry suffered from falling gold prices.

Regarding the state’s real estate market, the report says the top third of homes by value are 42 percent below peak value, but increased by 20 percent in the past year. Meanwhile, vacant land sales have increased by more than 60 percent in the past year. But those sales are still a long way from its peak, down almost 70 percent since the market peaked before the recession.

Commenting on behalf of the Private Bank in a statement, Jeremy Aguero, principal analyst with Applied Analysis, said the numbers reflect a heightened confidence among high net worth residents, which is likely to translate to more investments across Nevada:

“The optimism among high net worth individuals is impressive relative to the broader market, particularly as it relates to the long-term prospects for Nevada’s economy,” he added.

Contact reporter Ed Komenda at ekomenda@reviewjournal.com or 702-383-0270. Follow him on Twitter @ejkomenda.