Without a doubt the US and the economy here in Las Vegas are going through some challenging times. But, we think, as do many others, the news media and public are too focused on consumer buying – there is much more to our economy than consumer purchasing habits!
One of the big drivers in our economy is corporate spending. As an example, Wynn Hotels just announced a huge remodeling project for 2,700 of its rooms, which is a good illustration of corporate spending and how it can and will drive our economy moving forward. We anticipate more of this (renovations) here in Las Vegas.
Las Vegas has lots of major corporations in Gaming, Entertainment, and Health Services that are sitting on large cash reserves. We believe, as do many economists, that business investments could help to pick up the slack in our economy and also help to revitalize job growth that will in turn help to lift our economy.
Capital spending tends to ripple through the economy as purchases and construction boost business and create jobs. The Las Vegas boom/bust cycles are over and the flip side is we will see slower growth rates locally moving forward. Yes, some of our construction jobs are gone and may not return. But, this means that Las Vegas is well positioned for a strong rebound moving forward.
Finally, Las Vegas is the entertainment capital of the world – this is not going to change. This gives us some advantages over other metropolitan areas in our economy and will also help our real estate market. If you are visiting Las Vegas and want to look at some real estate please think about our Foreclosure Bus Tours held three days a week.
