Category Archive : Economy

LAS VEGAS, NV – Despite the ongoing COVID-19 outbreak winding down in some respects and states across the country starting the reopening of their local economies, the specter of the pandemic – and the possibility of an eventual resurgence – will continue to shape American’s vacation plans for some time to come.

According to a recent report, due to this “new normal” that we are all living in, many people who have been enduring home quarantines and are itching to get away from it all – yet still to maintain social distancing and safety guidelines – are turning to vacation home rentals this summer, with Las Vegas being one of the most popular destinations in question.

Reports also indicate that the vacation home rental industry is changing to meet these new times. Mainly used for short-terms stays of a few days, many are now encountering increased demand from clients who are looking to stay longer than usual – average stays have increased from a few days to as long as a month – after having been cooped up in their own homes for the last several months. In addition, new cleanliness and sanitation guidelines to help prevent the spread of COVID-19 are ensuring that landlords will make sure their properties are in full compliance to keep their renters safe.

The appeal of a vacation home rental is that it is possible to maintain a degree of social distancing that normally is not possible to do in a large and crowded hotel resort. These people are often on the lookout for large properties with plenty of amenities – such as a pool or a fire pit – that are adjacent to attractions that they can visit safely, such as the famed Las Vegas Strip, which is currently in the process of reopening for business after being shut down during the height of the pandemic.

The hotel industry has been one of the hardest-hit by the pandemic, not expected to fully recover until late 2022, but records show that the home rental industry – led by companies such as Airbnb and Vrbo – have continued to receive bookings thanks to people afraid to travel to crowded regions but desperate to get away in some form. Labor Day bookings of vacation homes, in fact, were reported to be comparable to last year’s figures, according to Airbnb and Vrbo.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to reports, the housing market in Southern Nevada has managed to avoid total collapse amid the financial strain brought upon the region – and, indeed, the entire country – by the conronavirus pandemic. And with Las Vegas beginning the initial stages of reopening its economy, real estate experts are attempting to access the damage, both short-term and long, and how business will continue to be conducted going forward.

The early days of the pandemic did have an impact upon home sales in Las Vegas, which were in the midst of a high point following its recovery from the mid-2000’s recession. Homes were still selling, apartments were still being rented, and properties were the subject of intense bidding. However, as rampant unemployment continues to spread – it’s currently at a record 28.2 percent – and it’s vital tourism industry put on-hold, it’s being questioned how long the real estate market can continue to resist the effects of the pandemic, even with Vegas eyeing a full reopening soon.

While still considered a seller’s market, the continued unemployment – combined with lenders increasing qualifications for loans – have some experts predicting that Vegas could become a buyer’s market in the near-future if things don’t improve soon.

Nonetheless, other experts are predicting a timely rebound for the Las Vegas housing market, noting that the market had hit a peak just before the pandemic hit, with the median price for a single-family home reaching $319,000 while in the midst of an overall housing shortage. Even now, sellers are reporting home sales that have multiple offers on them, particularly in Henderson, where demand for housing is such that even the pandemic is not taking all of the wind out of the marketplace.

While inventory may go up slightly, these experts say, the strong demand for homes will remain and will likely create a win-win scenario for both sellers and buyers. For example, a six-month supply of available homes in any given region’s market is considered balanced; in April 2020, Las Vegas only has a three-month supply, so there is indeed some wiggle room.

And given how hot the local economy was prior to the pandemic, it is likely that Southern Nevada will bounce back faster than many other regions in the country once things finally get back to normal.

The photo used, in this article, an aerial view of Las Vegas strip casino resort towers in Southern Nevada, is for editorial use only. It is credited to TrekAndShoot and licensed through Shutterstock.com.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The arrival of the Raiders NFL team to the Las Vegas region has sparked numerous aspects of the local economy, creating jobs and attracting businesses and even fans that have deemed it necessary to transplant themselves to the new city of their beloved team. But the latest news is that the team’s new Henderson-based headquarters and practice facility has had an interesting effect of essentially doubling the sales of nearby high-end homes during the first quarter of 2020, many in the $1 million range.

This has been dubbed in some real estate circles as “The Raider Effect.”

In addition of existing homes costing in the $1 million range in the area surrounding the Raiders’ Henderson headquarters jumping up to twice their normal levels so far this year, sales of residences in general – both new and existing, at all price points – have increased as well.

According to recent reports, 32 homes costing $1 million or more were sold in the first quarter of 2020, spread out among Seven Hills, Anthem Country Club, and Southern Highlands, all of which are situated within the corridor surrounding the Raiders’ $75 million headquarters. In contrast, that same region only saw 17 sales of such financial magnitude in the first quarter of 2019.

Obviously, not every home sale in the area is influenced by die-hard sports fans wanting to be in the vicinity of the NFL team’s new base of operations – opening in late 2020 – but it does reflect how much the Raiders’ headquarters has contributed to the overall growth of the Henderson region, leading to an increase of retail, jobs, and construction that has brought new residents from all walks of life seeking homes.

And of course, some of those homes were likely purchased by Raiders players themselves as they begin the process of uprooting themselves from their previous home of Oakland, California, where the team had previously been playing for the majority of its existence. The Raiders will be playing out of the newly-constructed Allegiant Stadium, scheduled to open in July 2020, although the currently ongoing coronavirus pandemic may cause potential delays to that plan.

Photo: Billboard on the Las Vegas Strip announcing that the Oakland Raiders NFL team are moving to Las Vegas in 2020. Photo credit: Steve Bruckmann, December, 2018, Shutterstock.com, licensed.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – With the ongoing coronavirus pandemic, crushing financial issues are causing people living in Las Vegas, Nevada to re-think home purchases due to a shaky, uncertain future brought about by lock-down orders placed upon the populace in order to curb the spread of the disease.

Reports are coming in of hopeful couples who have placed sizable deposits on homes – sometimes in the tens of thousands of dollars – only to have the rug pulled out from under them by losing their jobs or being furloughed by their employers. With their incomes suddenly removed from the equation, many buyers are finding themselves in an untenable situation- mainly, the very real possibility of not being able to get their deposit back on a home purchase they can no longer afford to make.

Throughout Las Vegas, home buyers are stuck in a quandary- whether or not to cancel buying their homes and eat the loss of their deposits, or tough it out despite the financial risks and see what happens?

In March 2020, government mandates resulted in the closure of many jobs and businesses that were deemed non-essential, effectively shutting down the city’s lucrative tourism industry and leaving many without ordinary sources of income. That month, the number of unemployment insurance claims filed ballooned 2,125 percent from the same period one year prior, with a record-setting 208,869 residents signing up for assistance.

The spring season is typically a busy one for the Las Vegas real estate industry; however, the scourge of coronavirus has caused record drops in sales, with a 28.5 percent month-to-month drop in home sales – representing only 1,970 single-family dwellings – occurring in April.

Despite the financial uncertainty in the region, many homebuyers are making the decision to stick it out and see what happens. However, Vegas home builders are also feeling the crunch, with a low 459 contracts signed in April and 215 cancelled sales; this represents a major drop from the over 1,000 sales a month during the previous three months this year.

Also, in an attempt to provide some degree of security for potential home-buyers, some real estate firms are attaching addendums to their sales contracts offering some protection for both parties, including the ability for buyers to recover their deposits in the event of financial distress brought about by the pandemic. It is hoped that this addendum – dubbed the “COVID Clause” – will help families who were mulling over possibly buying a home to feel safer about taking the plunge and, subsequently, assist in helping the marketplace to recover.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – While Las Vegas is feeling a variety of short-term negative impacts from the ongoing coronavirus pandemic currently hitting our nation, a prominent high-rise developer is noting that there could be long-term benefits, as eventually new business and residents seeking to economize could be driven to Southern Nevada from neighboring states. Strict stay-at-home orders and the closure of businesses deemed non-essential have brought the Las Vegas economy to a near-standstill and subsequently slowed the previously skyrocketing local real estate industry. However, Uri Vaknin, a partner at KRE Capital LLC, noted that while some high-profile deals have indeed gone awry amid the financial uncertainty brought about by the coronavirus outbreak, there nonetheless have been a few glimmers of hope as well that could lead to better things.

For instance, from March through early April, a number of expensive condo sales went under contract in downtown Las Vegas; Vaknin said that this is due to a number of residents and investors in neighboring states such as California – where the high cost of living is making the stay-at-home orders financially unfeasible – taking the plunge and finally moving to Southern Nevada, which has been lauded for it’s much more affordable lifestyle.

“Californians have historically made up a large percentage of our buyers for all the obvious reasons, including traffic congestion, quality of life, high taxes, pollution and unaffordable housing — all things for which the Golden State is known,” Vaknin said. “While COVID-19 is everywhere and can’t be escaped, a few of our buyers have mentioned their concern over being in lock-down in homes that are relatively unaffordable long-term and in areas with high taxes and other quality-of-life issues.”

This trend could continue as more economic refugees seek to flee the expense involved with living in California, as the overall financial impact of the coronavirus pandemic is likely to be felt nationwide for years to come. The fact that local economies will be impacted for such a potentially long period of time will likely encourage those who live in neighboring states to finally move in an attempt to live a more affordable lifestyle in nearby Las Vegas.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The North Las Vegas City Council recently unanimously voted at an emergency meeting to pass an ordinance allowing fines and other penalties to be imposed upon landlords and property managers who are in violation of state and city emergency anti-eviction decrees.

Amid the state of emergency brought on by the ongoing coronavirus pandemic, Nevada Governor Steve Sisolak had issued a statewide moratorium on March 29 against evictions, citing the economic issues faced by residents in light of strict business closure and stay-at-home orders. But some landlords have nonetheless defied that decree and have locked out and/or evicted tenants who have been behind on their rent.

The eviction decree by Governor Sisolak applies to all renters in the state of Nevada, be they monthly or weekly, residential or commercial, and applies while the state of emergency is still in effect; in addition, all late fees for back rent during the emergency period are waved. However, the non-eviction order does not apply to individuals who pose a threat to either their property or to others.

The moratorium had a mixed response, with some legal advocates supporting the move while others supported landlords and property managers, noting that they also have their own bills to pay throughout the crisis.

The North Las Vegas City Council, on a vote of 5 to 0, approved an ordinance that will seek penalties imposed upon anyone who violates Governor Sisolak’s decree – or any similar decrees issued by the city of Las Vegas – including fines in the amount of up to $1,000 a day as well as the potentially revoking the businesses licenses and permits.

In addition, according to Councilman Isaac Barron, misdemeanor charges resulting in jail sentences up to six months could also be imposed upon violators. The new rule went into effect immediately following the council’s vote, meaning that enforcement could start right away. “The goal, very specifically, is to stop a handful of bad-actor landlords and property managers from locking people out for failure to make rent,” he said.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Editors Correction: An earlier version of this article mentioned the ordinance was passed this week; it was passed in early April.

LAS VEGAS, NV – Despite two on-site workers testing positive for coronavirus – which causes the respiratory disease COVID-19 – it was announced this week that work would continue on the new home of the Las Vegas Raiders NFL team, Allegiant Stadium. The $2 billion, 65,000-seat venue is expected to be completed in July 2020 in time for the 2020 NFL season, currently scheduled for August 16.

Most recently, a worker for the Mortenson-McCarthy construction company tested positive last week for COVID-19, but the company noted that strict social distancing guidelines at the worksite prevented the infected worker from coming into contact with others, minimizing chances of the disease spreading further. A previous worker had tested positive for COVID-19 in March.

Mortenson-McCarthy representatives relayed their “heightened concern” for the safety of their workers, and have made adjustments to their labor volume and the timing of shipment deliveries to increase the precautions taken at the worksite.

Much of Nevada is currently under a stay-at-home order issued by Governor Steve Sisolak, with only businesses deemed to be “essential” allowed to remain open. Construction projects, which have been included in the “essential business” category, are still allowed to continue, but nonetheless a number of projects have been cancelled or postponed until the pandemic has subsided. Also, some contractors have reported delayed shipment of materials needed for their projects from China and Italy, areas of the globe where the coronavirus has hit the hardest.

Allegiant Stadium isn’t the only active construction site in Las Vegas with workers testing positive for COVID-19; recently, four workers at the Resorts World construction site and a worker at the Circa site have also tested positive for the disease.

In the wake of the ongoing pandemic, the Nevada Occupational Safety and Human Administration (NV OSHA) recently sent safety guidelines to construction companies state-wide, documenting precautions and procedures to ongoing projects to adhere to.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to recent reports, the ongoing coronavirus pandemic – the virus responsible for causing the dreaded COVID-19 respiratory disease that has claimed over 40,000 lives so far in the U.S. alone – has played havoc with the Las Vegas housing market, only just recovered from the mid-2000’s recession.

Las Vegas has been hit worse by the pandemic than much of the country, due to the city’s primary reliance on tourism. The stay-at-home order instituted by Governor Steve Sisolak – with similar orders issued by state governments nationwide – has closed all non-essential businesses, leaving many people stuck at home and without paychecks coming in. In March, 208,869 unemployment insurance claims were filed in Nevada, a whopping 2,125 percent jump from the same period one year prior.

This, of course, is drastically affecting the economy, but regardless of that, people in Las Vegas are still building and buying homes…but sales are decreasing fast while the state of emergency is in effect.

The number of home sales in Vegas for the month of April so far has dropped sharply when compared to March, with a large percentage of the drop contributed to the cessation of local house-flipping in the face of the pandemic. In addition, while construction – which is considered an essential service, and thus allowed to continue – is still underway, a number of projects have nonetheless been cancelled or postponed until the pandemic has subsided.

And while purchasing homes is considered essential, several measures have been passed by state government that makes that essential service more difficult to carry out. Real Estate open houses have been banned temporarily to prevent the spread of coronavirus, as have evictions and foreclosures as a way of protecting renters and homeowners who may be out of work, putting stress on existing landlords and property owners.

There are still many variables that will figure into just how badly Las Vegas’ housing market will be affected by the coronavirus, including how long the stay-at-home order lasts and when businesses will be allowed to open their doors once again.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The number of mortgage delinquencies in Nevada had reached its lowest point in years. Unfortunately, then the coronavirus came along and set things back once again, according to recent reports.

In January 2020, Las Vegas homeowners had reached a milestone, with records indicating that the sheer number of them behind on their mortgages was at a recent record low; only an estimated 1.3 percent were at least 90 days past due at that time, and had remained essentially “flat” since July 2019. This rate is the lowest the region has seen since January 2007.

However, with the ongoing coronavirus pandemic sweeping across the nation, that record was quickly finding itself undone as 2020 continued. With state governors issuing stay-at-home orders and only businesses deemed “essential” allowed to remain open, many people began finding themselves furloughed or laid off, and no longer able to make home mortgage payments.

The number of unemployment claims made in Nevada in 2020 through April 4 numbered at 271,530; this is over double the previous two years put together, reports say.

This, coupled with a degree by Governor Steve Sisolak not allowing landlords to begin eviction proceedings due to non-payment of rent or mortgage while a coronavirus-fueled state of emergency is in effect – except in the case of individuals who are a threat to others or the property itself – will likely see the number residents behind on their payments quickly balloon. And the longer the pandemic lasts, the greater that number will become.

In addition, numerous mortgage relief programs are now available that will likely contribute to the growing number of people behind on their home loans; for example, many lenders have instituted policies where, as the state of emergency continues, borrowers can defer payments for up to 90 days. Also, late fees and/or penalties due to nonpayment have been outlawed by state government; however, all back rent and/or mortgage is expected to be paid to the lender or landlord once the state of emergency has been officially lifted.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – The Nevada Occupational Safety and Human Administration (NV OSHA) recently sent safety guidelines to construction companies state-wide, documenting precautions and procedures to adhere to in the wake of the ongoing coronavirus pandemic sweeping the nation.

In light of recent “stay at home” orders issued to help curb the spread of the coronavirus outbreak, construction in Nevada has been deemed an “essential” business, allowing development projects to currently remain in effect.

However, in light of some construction workers testing positive for COVID-19 – the respiratory illness caused by exposure to the coronavirus – NV OSHA Chief Administrative Officer Jess Lankford sent out a letter to active construction sites in the state, outlining personnel safety procedures that must be adhered to going forward, including social distancing guidelines.

“It is visibly obvious that employees are still being directed/allowed to work in close proximity [less than 6 feet apart] to other staff,” Lankford’s letter said.

The guidelines outlined in the NV OSHA letter include the following:

• Restrict meetings, safety meetings//tailgate talks, and gatherings to no more than 10 people.
• Establish effective social distancing protocols, which ensure that staff maintain a 6 foot personal separation from other staff during meetings, discussions, etc., where 10 people or less are present. Ensure that social distancing protocols are maintained during operation of mobile service equipment designed for two or more passengers.
• Provide sanitization and cleaning supplies for addressing common surfaces in multiple user mobile equipment and multiple user tooling.
• Maintain 6 foot separation protocols for labor transportation services, such as buses, vans, etc.
• Conduct daily surveys of changes to staff/labor health conditions. NV OSHA is emphasizing the need for construction leadership to be working with and aware of the health and well-being of its labor force. Many leaders in the construction industry have implemented entry surveys of labor health conditions that have, and may, include temperature scans and in person Q&A.
• Ensure that any identified first responders in the labor force are provided and use the needed personal protective equipment (PPE) and equipment for protection comes from communicable or infectious disease.
• Provide access to portable and sanitary water.

In order to ensure that all developers are in compliance with these guidelines, NV OSHA noted that they would be sending representatives to randomly inspect construction sites; penalties for non-compliance could range from fines all the way up to the full closure of a project. Recently, workers at the Resorts World and the Raiders’ Allegiant Stadium construction sites were confirmed to have tested positive for COVID-19.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – In a recent research report, financial analysis firm Moody’s noted that out of the numerous states feeling the pinch due to the ongoing coronavirus outbreak, Nevada is the one most likely to be hit the hardest financially.

The spread of the coronavirus is making it difficult for experts to pin-point all of the specific factors that can determine what regions will be hit harder than others in terms of statewide economy. However, Moody’s research focused on several key factors – including demographics, trade and travel, tourism, finance, and commodities – and they have used those factors to determine the areas that are most assuredly to be the hardest hit financially.

Unfortunately, Nevada – and the city of Las Vegas in particular – is forecast to be the most affected, due to the fact that it relies on the lucrative tourism industry more than most states. As a result of non-essential business closures and stay-at-home orders instituted by state officials in the early days of the pandemic in order to help prevent the spread of COVID-19 – the respiratory disease caused by the coronavirus – the city has already suffered great financial losses.

This early and deep impact upon Vegas’ economy does not bode well for the speed of its recovery, according to Moody’s Analytics Chief Economist Mark Zandi.

“If you’re getting hit hard now and businesses are failing, and there’s bankruptcy and people are taking on debt or starting to default on debt, it’s going to be harder for those economies to recover,” he said. “So the No. 1 criteria for determining who recovers more gracefully will be who gets hit least hard during this period.”

Hawaii and Washington come in at number two and three, respectively, as states that are expected to experience severe financial woes due to the impact of the coronavirus upon the tourism industry. New York also ranks highly on the list, and currently contains the most cases of COVID-19 out of anywhere else in the nation.

In contrast, West Virginia and Missouri have seen the least coronavirus exposure – at least for the time being – and as a result their economies have been damaged far less, making their eventual recovery a less arduous task. But given the nature of the coronavirus outbreak, these factors and their effect upon statewide economies are subject to change as time goes on.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – According to reports, the construction industry in Las Vegas is continuing forward without any major setbacks attributed to the ongoing coronoavirus pandemic that is causing issues for its sister industry – real estate – but it remains to be seen what problems could arise if the outbreak ends later rather than sooner, experts say.

Construction, along with other fields such as medical and food, has been deemed an “essential” business by Nevada Governor Steve Sisolak, allowing work to continue unabated on numerous projects, free of governmental orders mandating many non-essential workers to remain at home to prevent the spread of coronavirus.

As a result, development on the many construction jobs currently ongoing in Las Vegas has continued without pause while the rest of the city essentially grinds to a halt; extra precautions have been taken on job sites to ensure that health and safety levels are maintained to prevent COVID-19, the respiratory disease caused by coronavirus. In contrast, workers in other industries that are deemed non-essential are holed up in their homes, waiting for the pandemic to blow over so they can return to work.

However, despite precautions, workers at Las Vegas construction sites have run into coronavirus-related issues during major ongoing projects; one worker at the Resorts World Las Vegas site and another at Allegiant Stadium have both come back with positive COVID-19 test results. There has been no word of Governor Sisolak re-evaluating his stance on construction work in Las Vegas based on these developments, however.

The coronavirus outbreak has caused problems with Las Vegas’ economy, which has only just righted itself after recovering from the mid-2000s recession. However, construction persists due to the word of experts that predict a fast turnaround to the city’s fortunes once the ongoing pandemic is finally resolved and people are able to return to work.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.