Recession Still Hitting the Strip, End in Sight, But just Barely
- Jun 29, 2011
Reports regarding the housing market, one of the most sensitive areas of Las Vegas real estate, seem to indicate that home values in the gaming haven will revert to their peak levels in 20 years. According to Vegas INC magazine, Moody’s Analytics reported that jobs lost during the latest recession will be restored by 2015.
The bottom line then, is that while Las Vegas still finds itself in a recession, recovery is imminent during the next few years. The employment figures in Las Vegas have dropped from 927,900 in 2007 to a staggering 801,700 in 2010. That number has since mildly recovered and is projected to reach 827,900 in 2012. Employment is predicted to reach 924,000 in 2015. Home prices have a much slower rate of recovery, especially since, if we are to take Moody’s analysis, the price drop won’t be over until next year.
Vegas INC also ran a story describing several major Las Vegas area real estate projects that have stalled since the recession. A number of high-end projects, such as the Echelon, which has been in development purgatory since August 2008 when the $4.8 billion project was drawn to a halt, have been completely stopped. Another recession landmark of the Las Vegas area, and probably the most emblematic, is Fontainbleau. The massive $2.9 billion resort owns a national record, in being the largest commercial construction project to declare bankruptcy in the United States. The magazine’s predictions set the completion date for the 63-floor, 3,815-room titan no sooner than 2015, after it was salvaged by Carl Icahn for a mere $150 million.