Nevada's Unemployment Rate Hits 5.4%

According to the Nevada Department of Employment, Training and Rehabilitation, Nevada’s seasonally adjusted unemployment rate was at 5.4% in November. The unadjusted rate for the Las Vegas area was 5.3%. The national rate remained unchanged at 4.7% in November, while California’s rate stayed at 5.6% in October (both rates seasonally adjusted). SurePayroll reported a 17% increase in small-business paychecks in Nevada during 2007. Nevada was the only state to have double-digit growth. The average salary in the state for workers at companies with 100 or fewer employees increased to $33,395, which is above the national average of $32,609.

Nevada Regains Title - Fastest-Growing State

Nearly 6,300 people moved to Clark County in December, for a total of just under 75,000 in 2007. The top feeder state, per the Nevada Department of Motor Vehicles, was California, with approximately one out of three new movers coming from our neighbor to the west. The state of Nevada has regained its title of the fastest-growing state in the nation. During the year ending July 1st, Nevada’s population increased 2.9% to more than 2.56 million. Census Bureau estimates list Arizona as the second-fastest growing state, after bumping Nevada off the top spot last year. Nevada has held the title of the fastest-growing state for 20 of the past 21 years.

Generation "Y" in Las Vegas

A demographic of 75 million strong, generation Y - The population group born in the late 1980's through the 1990s - has the numbers to affect the housing market as profoundly as the baby boomer's did after World War II. This gives Multifamily Investors and Developers opportunities in Urban In-Fill locations where this demographic desires to live. In Southern Nevada, in-fill locations close to the Strip, Downtown Las Vegas and Downtown Henderson are such locations. Converting Older Class - C apartment sites to young hip attractions in the not-so-distant future will be the play. Here's what you should be looking for in your site selection:

1. Locations that fulfills their need for instant access and convenience to work and entertainment. Generation-Y will not want big houses on big lots, isolated from everything. They will want to be where the action is...think urban locations with bright lights, night-life and walkable locations.


2. Look for quirky, unique, and different designs...why not convert an old commercial building into housing such as a convenience-stores, or a well located 2-story office buildings/warehouses. How about a functional obsolete strip center close to the Las Vegas Strip. Turning these types of properties into urban town homes could be a home-run.


3. Create distinct architecture, bold colors, flexible floor space, and ample amenities tailored to their interest and tastes, (such as fitness centers, wireless internet connections, and gathering courtyards).

You should also be aware that changes in household formations are forcing developers and investors to think outside the box to attract renters and buyers. In the past, household formations on average were much larger requiring larger square footages per unit for housing families. Today, the average household is less that 2.5 persons per HH and they are forming much slower during the recession. I think this is the result of gender and practical economics.

Women today are more likely to be singles and are graduating from college at a faster rate than their men counterparts. Design with this fact in mind. That's because women will likely delay marriage to pursue their careers, and their housing choices will be far different from those made by their baby boomer mothers, with their likely favorite being close-in multifamily rental or for-sale units in mixed-use communities that emphasize communal space and social interaction.