Economists Analyze Southern Nevada’s Economic Prospects for the Coming Years

Economists came together at an event hosted by UNLV’s Center for Business and Economic Research (CBER) to talk about what’s in store for Southern Nevada’s economy in 2024. They held their Economic Outlook event at Fontainebleau Las Vegas where they shared their thoughts on how the economy might change in the next few years. They pointed out that some areas might face tough times, while others will see gradual shifts.

CBER’s Stephen Miller Warns of Evolving Challenges Ahead

Stephen Miller, who heads research at CBER, pointed out that Las Vegas bounced back big after the pandemic. More people visited and gambling revenue shot up. But now, things might slow down soon.

Miller said the local economy is not about to crash, but if the whole country’s economy slows, it could put a damper on Las Vegas’s tourism and gambling businesses, reported The Las Vegas Review-Journal. He thinks fewer people will visit – maybe 5.8% less in 2025 and 6.9% less in 2026. This would match up with less gambling revenues too, which might drop 5.4% and 4.6% in those same years.

The slowdown has a strong link to what is happening in the national economy, Miller said. He pointed out that the Federal Reserve is trying to bring down inflation without causing a recession. This could lead to some minor setbacks for Nevada’s economy, which relies on what is going on across the country. He mentioned that people are spending now. Many have used up the money they saved during the pandemic as prices for goods and services have gone up. On top of that, credit card interest rates are higher too.

CBER Panel Discusses Job Market Adjustments and Housing Challenges in Nevada

People at the meeting also looked at how the job market has changed since COVID-19 hit. Miller pointed out that while Nevada’s hotels and restaurants still have fewer jobs than before the pandemic more people are now working in arts, entertainment, and fun activities. This shows a slow shift between different parts of the economy. Still, this change has kept Nevada’s unemployment rate higher than the rest of the country, with 5.6% of people out of work in September.

Andrew Woods, CBER’s executive director, stressed that housing plays a crucial role in Southern Nevada’s economy. High home prices and scarce land made worse by people moving from California, lead to a tight market, which further shows the gap between income groups.

The panel agreed that the region’s economic growth might slow down, but a bad downturn will not happen. This is true as long as big outside problems, like wars between countries or more world financial troubles, stay under control. Woods said ongoing issues like not enough workers could make wages go up. This makes it harder for companies to find people to hire.