Category Archive : Economy

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.

LAS VEGAS, NV – According to reports, the growing construction happening in Las Vegas in an effort to meet the demands of housing needs is having a rather predictable effect upon the price of the land this housing is sitting upon; that is, that price is going up.

In 2019, investors paid a median price of approximately $383,840 per acre of land for development in Southern Nevada, which represents an amount twice that from the depths of the mid-2000’s recession, reports say. Experts attribute this increase to numerous factors, including a skyrocketing economy and job market and a resulting influx of new hires into the region. Developers have scrambled to meet the growing demand for housing, erecting new homes, condos, and apartment complexes as quickly as they are able.

And of course, demand sets the price, and land owners acted accordingly, raising the rates per-acre significantly. But this follows with the history of Las Vegas, with land prices rising and falling in accordance with the economy and real estate market at any given time. For example, land prices dropped greatly during the recession, whereas they were quite lofty beforehand.

However high land prices are currently, they are not yet at their pre-recession peak; in 2007, when building in Vegas was in a frenzied state, an acre of land fetched as much as a median price of $835,180 per acre.

It also remains to be seen what effect the ongoing Coronavirus pandemic will have upon land prices in Las Vegas – and nationwide – as construction slows amid a mass population quarantine and temporary business closures dictated by local and federal government. But even if land prices do drop in the here and now, it’s a sure thing that they will eventually bounce back – and perhaps climb even higher – once the virus clears and becomes a thing of the past. However, some experts predict the Coronavirus could become seasonal such as the flu increasing the need for a vaccine even further..

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 now infamous coronavirus outbreak has brought the city of Las Vegas to a near-standstill, with casinos and hotels closed in an effort to head off the rate of infection. However, reports indicated that the real estate and construction industries are nonetheless doing their best to continue to meet the needs of the population in these historically difficult times, and despite the expected uphill battle, have made some progress in doing just that.

After several months of strong home sales and following a massive recovery of the local real estate market and economy, Las Vegas home sales have taken a hit due to the worldwide coronavirus pandemic, with some deals being delayed while other cancelled outright. The issues are fueled about concern over the long-terms effects of the coronavirus on the economy, as well as the local job market and the performance of stocks.

However, there are just as many real estate transactions that are still ongoing, and the local real estate and construction markets are doing what they can to adapt to changing conditions as best they can. Motivated buyers are still pounding the pavement to get good deals, and many agents and builders are still showing homes and apartments, albeit by appointment only for now.

Likewise, some buyers are avoiding the concept of “social distancing” to potentially find better deals while many are holed up in their homes in self-imposed quarantine. However, reports indicate that builders are not currently considering price drops, seeing this as a temporary situation that will eventually right itself.

In addition, due to the housing demand in Las Vegas – and the fact that the virus will eventually blow over with life returning to normal, although unknown how long that will take – people are still researching homes via the internet, with some even buying homes without even visiting them in-person, instead going by photo galleries and video tours.

January and February of 2020 both saw over 1,100 home sales in Las Vegas, and before the coronavirus scare March 2020 was on course to produce similar strong numbers, reports say, with 589 sales already recorded. Buyer traffic in new homes overall dropped this week to less than 4,000 people, down from 5,000 two weeks ago, reports indicate.

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 skyrocketing economy that Las Vegas has been enjoying since miraculously recovering from the mid-2000’s recession has hit a bit of a stumbling block in the form of the infamous coronavirus outbreak. Tourism had increased, multi-million dollar construction projects and development deals were constantly springing up, unemployment was dropping, and the real estate industry was enjoying a huge surge not seen since before the burst of the housing bubble. But in the wake of the coronavirus, business are shutting their doors – both in Vegas and nationwide – and the economy of Southern Nevada is starting to feel the pinch.

Casions and resorts are starting to see decreased demand as tourism drops amid airline flight restrictions and overall travel fears, and employment cuts are expected to take place in a variety of industries. This holds especially true in the hospitality industry, the very lifeblood of Las Vegas. MGM Resorts International is expected to begin layoffs starting next week, and according to reports it could amount to as many as 150 employees. MGM is one of the largest employers in Nevada.

In a city where tourism is king and people come in droves to be entertained in crowded casinos and event venues, the coronavirus is not an ideal situation, although it will take some time to ascertain the full extent of its impact on the local economy. It’s possible that the measures being taken now to limit exposure via social activity will prevent long-term economic damage and minimize the job, revenue and development project losses.

The degree to which tourism is important to the economic well-being of Las Vegas cannot be overstated, and the coronavirus is sure to have a trickle-down effect to almost every industry in the city. According to reports, tourists poured $35 billion in Southern Nevada in 2017, through which over 234,000 tourism jobs were supported. Currently, construction jobs are not being majorly affected, although some contractors have reported delayed shipment of materials needed for their projects when coming from China and Italy, areas of the globe where the coronavirus has hit the hardest.

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 the mid-2000’s Las Vegas housing market, prices reached their peak; in June of 2006, the median sales price of a single-family home hit an all-time high of $315,000, right before the recession hit and rendered the Southern Nevada market nearly inert for almost a decade.

Fast-forward to 2019, and real estate in Las Vegas has finally experienced something of a boom period once again. With the recovery of the economy and the influx of money and jobs into the region, experts began to notice the skyrocketing growth in the housing market. Inventory was scarce and prices were rising, but did they stand a chance of hitting the highs seen before the housing bubble burst? Some were skeptical, but none denied the record-setting growth.

But it appears to be happening, experts say; in September 2019, the median sales price of a single-family home hit $310,000. Closing the gap significantly between what is and what once was. Clearly, home prices – while their growth has finally started to slow recently – are on the cusp of reaching, and perhaps even surpassing, their previous mid-2000 levels.
However, experts say not to read too much into that milestone, as when taking inflation into consideration, the gap is not quite what it once was thought. Inflation means that, in 2019 currency, that peak 2006 home price of $315,000 would actually equate to 398,300. Also, while things have improved overall, they have yet to reach the point where lenders were practically giving loans away; from banks to developers, everyone touched by the real estate industry is playing it a little more safely these days, based on how badly they were burned last time around.

So while the symbolism of the new 2019 peak is a great way to bid farewell to the hardships that the recession forced upon Las Vegas – and indeed, the rest of the nation – it still indicates that there’s room for improvement, and illustrates just how bad things got when they were at their worst. But it also shows how far Vegas has come, and how far it’s still more than capable of going in the future.

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 the growth of home prices on the real estate market has slowed as of late after a period of massive growth, Las Vegas is still outpacing the vast majority of large cities in the county; that is, except its neighboring city of Phoenix, Arizona, according to reports.

In Southern Nevada as of July 2019, median home prices have been recorded as increasing 4.7 percent since the same period in 2018; this runs in direct contrast with the national average of 3.2 percent, reports say.

However, Phoenix has jumped in the rankings, showing a 5.8 percent gain year-over-year for the second month in a row. Previously, Las Vegas had occupied the top of the price growth list for a full year; for the past two months, it’s had to settle for number two on that list, a no less impressive distinction.

Currently, the median price of a single-family home in Las Vegas is $305,000 as of September, which represents a 3.4 percent increase over the same period of time in 2018. Growth is still there, although demand has decreased as developers have addressed the city’s rampant housing shortage brought on by a booming economy and an influx of out-of-state transplants looking for good jobs. The number of homes on the market is slowly increasing, which is helping to stabilize the formerly skyrocketing rate of growth for new home prices in the region.

In contrast, the median sales price of a single-family home in Las Vegas in August of 2018 represented a 13.5 percent increase over the same period in 2017, reports say; a massive jump, indeed. 

The current growth of the Las Vegas real estate market is seen as more sustainable, according to experts, many of whom were worried that the previous rapid growth the city was experiencing would soon affect the region’s much-touted affordable cost of living.

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 – Many Las Vegas construction projects that are either in the planning stages or are currently in the works are facing the very real threat of skyrocketing costs in the face of trade tariffs brought on by the ongoing US/China Trade War, according to recent reports.

As previously announced by President Donald Trump, on October 1, 2019, new tariffs – ranging from 25 percent to 30 percent – will be placed on $250 billion worth of Chinese goods; in addition, $160 billion worth of Chinese goods will come under a new 15 percent tax due to be instituted on December 15.

How this affects construction in Las Vegas – and much of the United States, for that matter – is in steel, one of China’s main exports, which is also home to six of the 10 largest steel-producing companies headquartered there, according to reports. 

And the increased steel prices that the tariffs are causing are making many developers think twice about going forward with – or scaling back – numerous planned projects in the Southern Nevada region due to the ballooning costs involved. For example, a proposed sports and entertainment complex for the Las Vegas Strip headed up by former NBA star Jackie Robinson has raised its estimated costs from $2.7 billion to nearly $3 billion as a result of increased steel costs, reports say. In addition, the developers of the MSG Sphere at The Venetian have increased their initial estimate from $1.2 billion to $1.7 billion.

However, an equal number of developers are pressing forward and taking on the extra costs as they come, while others are managing to remain on-budget as pre-existing purchase contracts with exporters have rendered them temporarily immune to the rising costs brought about by the US/Chine trade war. Projects that report no significant cost overruns due to the conflict include the Las Vegas Raiders Stadium and the Las Vegas Convention and Visitors Authority (LVCVA) convention center expansion.

According to the LVCVA, there are ongoing or currently planned projects scheduled to open through 2022 totaling in the amount of $15.2 billion within the confines of the city.

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.