How we stack up: Financial experts weigh in on Las Vegas’ recovery

In the early 2000s, Las Vegas was on the upswing for population, employment and housing growth. But at the downturn of the recession, Southern Nevada found itself on the wrong side of the curve.

“We were ground zero for the Great Recession, and because it was so deep, our fall off the cliff was a lot farther,” said Stephen Miller, director of the Center for Business and Economic Research at UNLV. “The recovery is taking longer for us, even if we’re recovering at the same rate as other cities. It’s like climbing a tall mountain compared to a small one.”

Although at a slower rate, local economic experts and analysts agree that the Las Vegas economy should continue to improve through 2016-17.

PREDICTING THE UNPREDICTABLE

There are some factors financial experts consider when predicting an economic upswing or coming downturn. They include monitoring the number of unemployment insurance claims; short-term and long-term interest rates; the stock market; and building permits.

However, predictions should always be taken with caution, according to Dr. Samuel Sarri, economics/philosophy professor at the College of Southern Nevada.

“The human factor is hard to predict, which makes economics such a difficult subject,” Sarri said. “We could say that we predict we’re eating pizza for dinner tomorrow but decide at the last minute we want a peanut butter and jelly sandwich instead. Economics operates in a similar unpredictable manner.”

BURSTING THE BUBBLE

Despite still leading the nation in home mortgages underwater, Las Vegas ranked third in the top 30 metros for fastest growth in housing prices between 2010-15, according to Brian Gordon, a partner at Applied Analysis.

“We bottomed out in 2009 when about 70 percent of homes were underwater. Now, it’s about 23 to 24 percent of homes,” Miller said. “We’re still leading the nation in that aspect, but the large reduction of that is because home prices have gone up.”

During the recession, the median house value dropped from about $345,000 to about $90,000, according to Sarri.

“Right now, the median is about $179,000,” Sarri said. “We project that the median will catch up in around four to five years. So by 2020, we may go back to reasonable median values, which is about $220,000 to $225,000.”

FULL-TIME VERSUS PART-TIME WORKERS

As the economy declined, CSN professor Kevin Raiford said employers preferred to hire more part-time workers and outsource other jobs to save costs and scale down.

“As a result, more people had to work two jobs just to make ends meet,” he said. “There’s less of a support structure and less job security that way. People are seen as very replaceable, and it makes a huge impact on our community.”

BROADENING THE JOB MARKET

Despite having one of the highest unemployment rates during the recession, Las Vegas ranked first in the top 30 metros for improvement between 2010-15. In five years, the rate decreased 7.7 percent, according to Gordon.

“It’s important to also notice that the mix of jobs is much different,” he said. “While the construction sector is down 50,000 jobs since our economic peak, we’ve seen gains in other sectors. The wider distribution of jobs is expected to provide some level of increased stability.”

Also, the increase in small businesses is driving the economy in a positive direction, Raiford said.

“We’re definitely making some progress because we repurpose ourselves and see the alternatives in situations,” he said. “Vegas has a ‘can-do’ attitude, and our numbers are often better thªn they look.”

THE COST OF EDUCATION

In 2014, the median income per household in Clark County was about $51,200. The national average was about $53,650, while states such as Maryland and Connecticut ranged above $70,000, according to Sarri.

“It’s the nature of the labor demanded,” he said. “Washington, D.C., Maryland and Connecticut have a higher demand for lawyers, physicians and bankers. (Las Vegas) is still looking for manual laborers, such as housekeepers and servers, which pay less.”

However, he stressed the importance of obtaining an education when entering the workforce or looking for a new career.

“Gone are the days of being a valet driver out of high school and making $80,000 a year,” he said. “Now, even if you have (a Master of Business Administration), you’ll be lucky if you start at $60,000.”

FEAST OR FAMINE

Las Vegas is a feast or famine kind of city, according to Raiford. He calls our income disparity “one of the largest in the nation.”

“I think our ‘Vegas mentality’ plays a huge role in it,” he said. “We’re such risk-takers. There is no middle ground — we go for it all or lose it all.”

Glancing at the Strip, Sarri said, “you would think Las Vegas is full of billionaires.”

However, nearly 24 percent of the population lives below the poverty line, and 50 percent of children live with parents whose mortgages are underwater.

“We need to encourage students to learn a trade skill after high school. You can get a license within six months and get a decent paying job,” Sarri said. “You don’t need a Ph.D. to get paid $800 a month. That’s poverty after all the sacrifice you went through for 10 years.”

A BRIGHTER FUTURE

Historically, Las Vegas has had one of the most robust economies in the country, barring the last decade, according to Gordon.

With a growing job economy and housing industry, he said the valley remains an affordable place to live compared to other major markets.

“We’re full of opportunities and 320 days of sunshine. Compared to Portland or Buffalo, Las Vegas is on the upswing,” Raiford said. “With a positive mentality, we’ll always persevere and adapt.”

While the economy is getting better, Sarri said it won’t be like the pre-recession heydays.

“We have to learn to live with less, and we have to create more with less,” Sarri said. “If we can live within our means, then we can feed the growth of the economy.”

News Videos
Henderson fails to investigate the drug overdose death of one of its officers
Henderson Police Department's internal affairs did not investigate the 2014 drug overdose death of an officer. (Las Vegas Review-Journal)
Syphilis Awareness Day
Dr. Joe Iser, District Health Officer of the Southern Nevada Health District, discusses the effects and issues with syphilis in the Las Vegas community on April 16, 2019. (Mat Luschek/Las Vegas Review-Journal)
Las Vegas diocese IDs 33 ‘credibly accused’ of sexual abuse
The Catholic Diocese of Las Vegas released a list on Friday of 33 “credibly accused” of sexual abuse who at some point served in the Las Vegas Valley. (Michael Quine/Las Vegas Review-Journal)
CCSD Arbor View meeting
The Clark County School Board hears from the public about racial tensions at Arbor View High School on Thursday, April 11, 2019. (Amelia Park-Harvey/Las Vegas Review-Journal)
Parents of autistic student battle Clark County School District
Joshua and Britten Wahrer, parents of a special education student, are battling the Clark County School District for the right to equip their son with a monitoring device. (Amelia Pak-Harvey/Las Vegas Review-Journal)
New Metro homeless outreach a shift in strategy
Lt. Joe Sobrio discusses the new homeless outreach team for Metro. (Rachel Aston/Las Vegas Review-Journal)
Prayer for Opportunity Scholarships
Las Vegas students and adults hold a prayer meeting about the Opportunity Scholarship program on Thursday, April 4, 2019. (Amelia Pak-Harvey/Las Vegas Review-Journal)
Solar scams on the rise in Nevada
As Nevada’s solar industry has made a resurgence, solar scammers have followed suit.
Clark County schools and the late bus issue
Year after year, late or no-show buses in the Clark County School District draw the ire of parents and students alike. One year the problem even prompted a parent to crack a school bus window in frustration over a late drop-off. (Mat Luschek/Las Vegas Review-Journal)
I-15 southbound congested near Primm Sunday afternoon
Drivers heading toward California on Interstate 15 should expect heavy traffic and a 13-mile backup Sunday afternoon.
Learning lifesaving skills in advance of fire season
Students and firefighters attend a training session at Fire Station 80 in Blue Diamond, Saturday, March 30, 2019. The training session helps volunteer firefighters obtain necessary annual certification to work wild fires.
Car restoration behind prison walls
Inmates share their experiences working for the Southern Desert Correctional Center auto body shop in Indian Springs while learning valuable skills.
Parent remembers Las Vegas boy killed by car
People visit a memorial at the intersection of South Fort Apache Road and West Arby Avenue at at Faiss Park Wednesday, March 27, 2019, where Jonathan Smith, 12, of Las Vegas, died after he was struck while crossing Fort Apache Monday. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Couple left with surprise medical bills after visit to the hospital
Michael Pistiner took his wife, Marta Menendez-Pistiner, to the ER in January after she fainted twice and appeared to be having a seizure. Despite paying $856 monthly for health insurance, the two, self-employed musicians, were stuck with more than $5,700 in hospital and doctor bills after than hour-and-a-half visit. Caroline Brehman/Las Vegas Review-Journal.
Las Vegas police brief the media on fatal crash
Metropolitan Police Department Capt. Nick Farese addresses the media about a car accident at South Fort Apache Road and West Arby Avenue that left one minor dead and one hospitalized on Monday, March 25, 2019. (Mike Shoro/Las Vegas Review-Journal)
Former Arbor View parent talks about racial issues at the school
Lawanna Calhoun, a former Arbor View parent, talks about the state of the school. (Amelia Pak-Harvey/Las Vegas Review-Journal)
Jim Foley talks about 30 years of living HIV-positive
Jim Foley, who was diagnosed as HIV positive 30 years ago, talks at his home in Las Vegas on Wednesday, March 13, 2019. (Chase Stevens/Las Vegas Review-Journal)
Traffic Slows to a Crawl on I-15S Near Primm
Traffic slowed to a crawl around 2:30p Sunday, on I-15S near Primm, Nevada.
Homeless residents speak about safety
The homeless residents living at the corner of Owens Ave. and Main St. reflect on how they feel about their safety after two homeless men died, one was hit crossing the street and another was beat to death by another homeless man. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
CCSD Superintendent address alleged racially motivated threats at Arbor View
CCSD Superintendent Dr. Jesus F. Jara gives update on alleged racially motivated threats against Arbor View High School, and says such threats will not be tolerated. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Super Bloom Near Lake Elsinore, California
Crowds packed the hills near Lake Elsinore on Saturday to capture a rare selfie amidst the super bloom of poppies turning the landscape purple. The super bloom was caused by the larger rainfall this year. (Todd Prince/Las Vegas Review-Journal)
Fiery accident in Las Vegas
A three-car accident on Spring Mountain Road around 6:30 pm on Monday night
A bipartisan coalition holds simultaneous rallies to promote criminal justice
A bipartisan coalition holds simultaneous rallies to promote criminal justice. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Stardust implosion anniversary
Twelve years ago today, the Stardust Resort and Casino was imploded. (Mat Luschek/Review-Journal)
Lawsuits filed against security contractors at Nevada National Security Site
Two lawsuits were filed today against the current and former government security contractors for the Nevada National Security Site, one on behalf of Jennifer Glover who alleges sexual discrimination and assault and the other on behalf of Gus Redding who alleges retaliation after he gave statements supporting Glover’s claims. (Rachel Aston/Las Vegas Review-Journal)
New housing option helps Las Vegas moms keep kids while kicking drugs
WestCare Nevada Women and Children’s Campus in Las Vegas has added a new transitional housing wing for women who have completed the inpatient treatment at the behavioral health nonprofit to help them as they go through outpatient treatment, shore up their finances and prepare to secure long-term housing. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Teenager in critical condition after being struck by an SUV in Henderson
Authorities were called about 2:45 p.m. to the scene in the 2100 block of Olympic Avenue, near Green Valley Parkway and Sunset Road. The teenager was taken to University Medical Center in critical condition. (Michael Quine/Las Vegas Review-Journal)
The Water Question Part 3: Conservation loves a crisis
Future growth in the Las Vegas Valley will rest almost entirely on the community’s ability to conserve its finite share of the Colorado River.
The Water Question Part 7: How much can we grow?
Many experts agree that Southern Nevada can continue to grow, so long as residents are willing to do what needs to be done to stretch our crucial resource as far as it will go.
The Water Question Part 6: How many people can Southern Nevada’s water sustain?
The number can swing wildly depending on a host of variables, including the community’s rates of growth, conservation efforts and the severity of drought on the Colorado River.
Business Videos
Boxabl official explains the building concept
Boxabl business development manager Galiano Tiramani shows off a room built by his company. (Blake Apgar/Las Vegas Review-Journal)
Las Vegas Convention Center expansion taking shape
Renderings and actual footage show how the Las Vegas Convention Center is evolving.
Former Starbucks CEO Howard Schultz at Las Vegas convention
Former Starbucks CEO and potential presidential candidate Howard Schultz spoke at the Epicor Insights user conference at Mandalay Bay Convention Center Wednesday, April 17, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Drew Las Vegas to open in the second quarter of 2022
The 67-story Drew Las Vegas is slated to open in the second quarter of 2022 at the north end of the Las Vegas Strip. (Michael Quine/Las Vegas Review-Journal)
NAB Day 1 (Time Lapse)
NAB kicked off at the Las Vegas Convention Center on Monday, April 8, 2019. (Mat Luschek / Review-Journal)
National Association of Broadcasters Show shows 1mm thick 8K TV with 22.2 channel digital sound
Japan’s NHK Science & Technology Research Laboratories booth featured a 1mm thick 8K TV system used in conjunction with a 22.2 channel digital sound system at the National Association of Broadcasters Show at the Las Vegas Convention Center. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Nevada shoppers react to Smith’s no longer accepting Visa credit cards
On March 1, Smith’s announced that it would no longer be accepting Visa credit cards at any of its 142 supermarkets, including the 45 in Nevada.
Massachusetts Gaming Commission asks how long Wynn executives knew about misconduct
Business reporter Rick Velotta gives an update on the adjudicatory hearing on the suitability of Wynn Resorts to retain its gaming license in Massachusetts.
Henderson app developer part of Startup in Residence
Henderson based developers of the app On Point Barricade are taking part in Startup in Residence, a North America program dedicated to pairing tech companies with governments. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sam's Town employees and customers talk of their love for the iconic casino
Longtime Sam's Town employees and customers love each other and love their casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas apartments rents
Las Vegas’ apartment market has accelerated in recent years. Developers are packing the suburbs with projects, landlords are on a buying spree, and tenants have filled buildings.
William Boyd talks about the birth of Sam's Town
On the eve of the 40th anniversary of Sam's Town, William Boyd, executive chairman of Boyd Gaming and son of hotel namesake Sam Boyd, talks about how the casino became one of the first local properties in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
High Roller observation wheel turns five
The world’s tallest observation wheel celebrates it’s fifth year on Sunday, March 31, 2019. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Escape Room Industry Growing In Las Vegas
Escapology employees discuss the growing escape room industry in the U.S. and Las Vegas. (Bailey Schulz/Las Vegas Review-Journal)
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
LVCVA/Boring Company Press Conference
The Las Vegas Convention and Visitors Authority announced a collaboration with Elon Musk's The Boring Company to develop and operate an autonomous people mover system for the Las Vegas Convention Center District.
International Pizza Expo includes green and gluten free
The International Pizza Expo at Las Vegas Convention Center included companies focused on vegan and gluten free, and plant-based pizza boxes. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
International Pizza Expo kicks off in Las Vegas
The first day of the International Pizza Expo at Las Vegas Convention Center is everything Pizza. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
T-Mobile program aids guests with sensory needs
A program at T-Mobile Arena is designed to provide a more sensory friendly experience for guests.
Photo Booth Expo
Danielle May talks about how Simple Booth transformed her Volkswagen bus into a business.
Nevada Gaming Commission's highest fines
The highest fines assessed by the Nevada Gaming Commission, according to commission Chairman Tony Alamo: 1) Wynn Resorts Ltd., $20 million, 2019 2) CG Technology (then known as Cantor G&W Holdings), $5.5 million, 2014 3) The Mirage, $5 million ($3 million fine, $2 million compensatory payment), 2003 4) Stardust, $3 million, 1985 5) Santa Fe Station, $2.2 million ($1.5 million fine, $700,000 compensatory payment), 2005 6) Las Vegas Sands, $2 million, 2016 7) CG Technology, $1.75 million, 2018 8) CG Technology, $1.5 million (also $25,000 in escrow for underpaid patrons), 2016 9) Caesars Entertainment, $1.5 million, 2015 10) Imperial Palace, $1.5 million, 1989 11) Peppermill Casinos, $1 million, 2014
Tiny Pipe Home vs Shipping Crate
A Tiny pipe home was displayed at the International Builders Show this week in Las Vegas.
Auto repair shortage affects Las Vegas
The auto repair industry is facing a national shortage of workers.
Franchising industry booming
Experts say Las Vegas is a hotbed for the franchise industry.
Africa Love owner talks about his store in Las Vegas
Mara Diakhate, owner of Africa Love, gift and decor store, talks about his store in Las Vegas. (Bizuayehu Tesfaye/ Las Vegas Review-Journal) @bizutesfaye
Developer gets approval to build homes at Bonnie Springs
The Clark County Planning Commission has approved a plan to build 20 homes on the site of Bonnie Springs Ranch. (Michael Quine/Las Vegas Review-Journal)
TOP NEWS
Home Front Page Footer Listing