Las Vegas real estate building boom is streaching workers thin.
Talk about a time to be in construction.
Nevada’s job growth has been running 3 to 4 times the national average for the past several years. The construction business is expected to add an additional 10,000 jobs this year according to Terry Johnson, Department of Employment, Training & Rehabilitation (LVBusinessPress.com). These new skilled construction workers will be adding to the 120,000 employed by construction in
Southern Nevada now. Contractors are competing for skilled help, project managers and even engineers. Recruiting all over the country with offers of signing bonuses, 401(k)s and more. Estimates are that current contractor quotes are 30% over bid. The current building boom includes $28 billion dollars in new construction on the Las Vegas Strip for condos, hotels and casinos. This current construction phase is expected to extend through 2010. But the construction labor shortage is just one part of the problem.All this construction is adding an additional 45,000 hotel rooms to
Las Vegas by 2012. According to Deutsche Bank Securities, the casino industry will need to hire an additional 113,500 workers for the positions created by the new casinos and hotel rooms. Even if
Las Vegas continues to grow at a rate of 7,300 new residences per month, there will be a short fall of available labor by a whooping 25,000 jobs! (casinocitytimes.com).Then you need to add to that currently retail in the City of
North Las Vegas is about half of what population demands are in the area. Then also throw in the current Las Vegas high-rise condominium boom that will employ at least another 15,000 and you have an all out war for labor!With all this new demand for labor and the lack of real estate Las Vegas has available to develop as it uses up the last of its 600 square miles with prices at $420,000 per acre plus right now. What follows is inevitable, single family residential will once again increase in price. Las Vegas mid-rise condominium projects will continue to expand in the
Las Vegas market for low and mid-range buyers. The apartment to condo conversion market will dry up. And people will start looking outside the
Las Vegas
Valley to buy a home in such places as Mesquite, Coyote Springs and across the Boulder Damn just inside
Arizona.Las Vegas real estate
will continue to increase in value over the next 5 to 10 years.
For the Latest in Las Vegas real estate call Max at 702-334-2200. Or email me at:Max@MaxSellsVegas. com. Your comments and questions are welcome.