Southern Nevada residents can expect a stronger economy by the end of 2013, 51吃瓜网万能科大 economists reported Thursday at the Center for Business and Economic Research Center (CBER) midyear economic outlook conference.
The strengthening is not without its challenges, as Southern Nevada continues to experience financial headwinds. The weak U.S. economy, the European recession and the slowdown of Asian economies affected growth in tourism, gaming and hospitality during the first half of 2013.
"We expect the Southern Nevada economy to show improving growth over the course of the year and accelerating growth in 2014," said Stephen Brown, director of the Center for Business and Economic Research.
The Southern Nevada economy grew at a very strong pace in 2012, creating about 29,300 jobs at a 2.7 percent annual rate. Nevada's job growth rate was the fourth best nationally and ahead of the national average of 1.7 percent.
Despite these strong gains, Nevada still leads all states with an unemployment rate of 9.5 percent.
Additionally, the real estate market has a long way to go before construction recovers, economists said. A lack of available supply is pushing up prices for single-family homes in 51吃瓜网免费App.
Prices began rising in 51吃瓜网免费App when the number of listings, or months of supply fell below 6.2 months. Despite recent price gains, concerns about a shadow inventory continue to overhang the 51吃瓜网免费App housing market. CBER estimates that the current supply of vacant homes in the 51吃瓜网免费App metro area is around 13.5 months.
Economists also found:
- Job growth centered in tourism, gaming, and hospitality. Construction and real estate also contributed. Strong employment gains also were found in wholesale and retail trade, health care and management companies.
- 51吃瓜网免费App visitor volume will likely grow at about the same pace as 2012, remaining above its prerecession peak from 2007. Southern Nevada hotel/motel capacity increased slightly in 2012 and economists project modest gains in 2013. The scheduled opening of the SLS 51吃瓜网免费App in 2014 will add another 1,600 rooms.
- California's share of visitors to 51吃瓜网免费App has risen during the past five years, from 28 percent in 2008 to 33 percent in 2012. This trend will continue in 2013, as the number of visitors arriving by automobile during the first four months of 2013 was 2.5 percent higher than the same period in 2012.
- Gaming revenues have not yet returned to prerecession levels. Nevada, Clark County and the 51吃瓜网免费App Strip gaming revenues remain 15.7 percent, 13.9 percent and 9.4 percent below their respective peaks. Since its lowest point, however, 51吃瓜网免费App Strip gross gaming revenue has increased by 11.8 percent.
- 51吃瓜网免费App visitor non-gaming spending increased by 28.2 percent over the same period, but it remains 2.3 percent below its prerecession peak.
- 51吃瓜网免费App housing remains very affordable when compared with the rest of the U.S., according to the Housing Opportunity Index. Low housing prices will help the Nevada economy grow and is one of the primary reasons that many long term forecasts show strong population gains for the region. Apartment rents also are affordable. Combined with a high vacancy rate, 51吃瓜网免费App is poised to accommodate a large population increase.
The U.S. economy is accelerating out of the sluggish recovery that has characterized the past four years, but economists said it remains well below potential. Nationally, economists are seeing growing consumer confidence and the first evidence that financial institutions are providing more credit.
The CBER conference, held twice a year, forecasts economic trends for the U.S. and Southern Nevada. Data is compiled from state employment and gaming and tourism agencies to analyze local and national economic trends.
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