The decline of construction jobs has coincided with the lack of home sales seen this year in Southern Nevada.
The Department of Employment, Training and Rehabilitation announced construction jobs fell by 4,400 positions in August. The DETR reported that unemployment claims in August were most commonly filed by construction laborers, carpenters and electricians.
DETR’s David Schmidt said those positions are commonly seen in home construction. Schmidt went on to say he believes the decline in construction employment is directly related to the lack of home sales.
Home Builders’ Research found there were 974 houses sold in Southern Nevada in January of this year. The agency reported 653 homes were sold in August.
The Associated General Contractors of America reported that construction in the Silver State made up 7.8% of its $260B GDP in 2024. This rate is only second to Utah, where construction employment made up 8.5% of its GDP in 2024.
The Bureau of Labor Statistics reported a net loss of 3,000 nationwide construction jobs in August. This indicates losses were heavily seen in Nevada compared to other areas. The data, however, is still uncertain as the monthly numbers are often revised later on. The data has a margin of error of up to 25,000 positions in either direction.
Local home contractors in Southern Nevada have also claimed business has been slowing. Furthermore, remodels and tenant improvements are becoming increasingly scarce opportunities. As homebuilders are subject to paying interest on homes sitting in inventory, they may be less inclined to take on new developments.
For example, Lennar Homes reported net earnings from June to August at nearly $1.2B in 2024. This year, however, net earnings merely sat at $591M, which is nearly half the revenue garnered the year prior. The company has since addressed this by lowering prices by an average of 22%, which has increased sales orders.
Diane Varney stated 25% of home sales are falling out of escrow. In Southern Nevada, roughly 15%-19% of homes are falling out of escrow. Homes left on the market for one-to-two months have a 30% chance of selling. Buyers have become increasingly uninterested in homes that require heavy maintenance investments. (Source)
