After facing one of the steepest declines in employment during the pandemic, the Las Vegas Valley has fully recovered.
The National Association of Home Builders recently completed a study that analyzed U.S. Census Bureau data across the last five years. The data demonstrated that the region shed 277,900 jobs, or roughly 26% of its workforce, in 2020.
From February 2020 to April 2020, the unemployment rate in the area rose from just 4% to 34%.
The analysis went on to find the Las Vegas Valley surpassed its pre-pandemic employment level by 9% in August. Las Vegas was hit particularly hard due to its close ties to tourism. The unemployment rate remains elevated, however, as August reflected an unemployment rate of 5.6%.
The analysis compared the employment behavior of 393 major metro regions nationwide. Of those 393 regions, 93—roughly 23.7%—have yet to fully recover.
Housing Market
Hector Amendola, the president of Panorama Mortgage Group, said despite the employment recovery from the pandemic, the housing market is still deeply affected. During the pandemic, mortgage rates were exceptionally low, which resulted in a national homebuying spree.
The mixture of factors resulted in the median sales price for homes in the Las Vegas Valley reaching all-time highs. Current prices hover near record highs, and mortgage rates have been elevated.
This has ultimately resulted in potential buyers not being able to afford a home. A large number of Americans are avoiding purchasing homes due to financial reasons, while others are waiting for pandemic-era mortgage rates.
Amendola also noted the homebuilding market in the region has slowed, which could be a cause for alarm for the economy. (Source)
