Information updated November 28, 2007.
The thrust of economic development in Las Vegas, Nevada is greater than anywhere in the United States, and greater than anywhere on the planet earth. The gaming industry alone has spent 20 billion dollars over the last 14 years. This incredible economic growth, combined with available land, water and a political climate favorable to development has led a very strong market for both new and resale homes.
There is tremendous development activity on and around the strip. It is estimated that with the projects in place, 45,000 more hotel rooms will be added to the strip area by 2012. Deutsche Bank Securities estimates the casino industry will need to hire 113,500 workers for the positions being created. The projects underway include the 6 billion dollar project CityCenter, 1.8 billion dollar Palazzo and the 1.4 billon dollar Encore. In addition, Boyd Gaming is preparing the closed Stardust site for their Echelon Place, a 4 billon dollar project. Station Casinos has broken ground in February on their 600 million dollar hotel casino in North Las Vegas. Additional projects scheduled to open in the 2008-2009 period include Turnberry Associates Fontainebleau and the Trump International Hotel and Tower.
Downtown is also turning into a hot bed of development. Union Park, a 61 acre development just west of Fremont, is becoming a reality. The Lou Ruvo Brain Institute has broken ground and the Smith Center for the Performing Arts scheduled to break ground in 2008. The World Jewelry Center with 1 million sq. ft. is in the planning stages as well as a number of retail and residential projects. The World Market Center, just to the west of this is partly finished and in operation. The World Market center will have over 12 million sq. ft. of floor space when completed. Three new residential high-rise developments are under construction, Streamline Towers, Newport Lofts and Juhl. Soho Lofts is now completed. An number of upscale bars, shops and restaurants are moving into the area.
A recently released study of the local market, commissioned by the Southern Nevada Homebuilders Association and done by Applied Analysis, forecasts the following: "the largest wave of openings (strip area projects) in the regions history is set to begin....later this year. We estimate that this and other contributing factors will stimulate demand for 177,400 housing units between 2008 and 2012, a 13.3% increase over the demand reported during the preceding five-year period (ie., 2003 through 2007)." This 75 page study predicts that housing supply will peak late 2007/early 2008. They estimate that cutbacks in permitting activity combined with this increased demand could possibly create a housing shortage by late 2009.
by Millie Fine
Thanks to
Kristy Pentoney-Frias
Title One
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