UNLV forecasts modest Nevada economic recovery through 2014

The Southern Nevada economy is about halfway through its third year of modest economic recovery, a trend that will continue this year and next despite possible setbacks in real estate and tourism, according to a report Thursday from the University of Nevada, Las Vegas.

The 2013 Midyear Economic Outlook by UNLV’s Center for Business & Economic Research found the region’s 2.7 percent job growth last year was driven by improvement in tourism, gaming, construction and real estate.

Stephen Brown, director of the CBER at the Lee School of Business, said job gains posted last year ranked Nevada fourth in the nation. But those numbers were forecast to dip slightly, to 2.5 percent in 2013, before jumping to 3 percent in 2014, he said.

Nevada’s unemployment rate stands at 9.5 percent, with Las Vegas at 9.8 percent. That rate in Nevada is expected to decline to 8.4 percent this year, before dropping to 6.9 percent in 2014.

“We are seeing improvement, but Nevada remains the state with the highest rate of unemployment in the nation,” Brown told some 150 attendees of the Midyear Economic Outlook, a twice-yearly forecasting event held at UNLV’s Stan Fulton Building.

Robert Lang, director of UNLV’s Lincy Institute and a nonresident senior fellow with the Brookings Institution, and UNLV President Neal Smatresk also spoke Thursday.

Smatresk reminded attendees of UNLV’s $1.5 billion annual economic impact. He said that number includes about $900 million in direct impact such as payroll and spending by students; $100 million in grants and contracts; and more than $300 million generated by the Thomas & Mack Center.

He said UNLV does all of it with a $124 million annual state investment. To be a top-tier university, the $550 million total budget for this year would have to double.

“This is important,” Smatresk said. “You’ve got to invest if you expect to get a return on that investment.”

Brown pegged the region’s recovery to improved economic conditions nation­wide. “Economic growth shows sign of traction,” Brown said. “What we need is the financial sector to gain confidence in the economy. Up until this year, we really haven’t seen the financial sector stepping up.”

The report predicted U.S. growth at 3.3 percent in 2013. Brown said risks to the national recovery include fiscal austerity and budget problems in Washington; weak international growth; and rising oil prices and other commodity prices.

Brown also forecast visitor volume and gross gaming revenue in Clark County to continue to modestly improve through 2014.

Visitor volume last year reached 42.7 million and is expected to jump to 43.1 million this year and 43.7 million in 2014. Gross gaming revenue countywide last year was $9.3 billion, with economists expecting $9.7 billion in 2013 and $9.8 billion in 2014.

“Clark County is not yet back to where it was in 2007,” Brown said. “A concentration of those revenues will be from the Strip. We expect that trend to continue. Las Vegas will do better than the rest of Clark County and the state.”

Southern Nevada hotel occupancy increased by 320 rooms, to 150,481, last year.

Another 451 rooms are expected to be added this year, and 1,600 more in 2014 with the opening of SLS Las Vegas.

The residential real estate market is expected to produce little new supply as buildable lots are scarce and housing prices remain well below replacement costs of a new home. Housing affordability in Southern Nevada remains high at 86 percent, compared with 15 percent during the boom.

Brown cautioned that the region’s economy still lacks diversity and is dependent on gaming and whatever construction it can get.

Contact reporter Chris Sieroty at csieroty@reviewjournal
.com or 702-477-3893. Follow @sierotyfeatures on Twitter.

ad-high_impact_4
Business
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
TOP NEWS
News Headlines
Home Front Page Footer Listing
Circular
You May Like

You May Like