Robert Davis Explains How Las Vegas’ Economy and Real Estate Market Have Been Impacted by COVID
From remote working to online strategies, new regulations and protocols are changing the way people work. However, no industry has been hit harder than travel and tourism. In cities like Las Vegas, where the primary driver of economic growth is travel, tourism, and entertainment, the job losses have been significant. As a Nevada resident and as the Founder of RD Heritage Group, a partnership of five family offices dedicated to solving urgent social and economic challenges through diverse investments, Robert Davis from RD Heritage is invested in the economic recovery of Las Vegas. He shares his perspective on how Las Vegas’ real estate market has been impacted by the pandemic.
A Significant Drop in Visitors
The pandemic has forever changed the face of business in Las Vegas. As a prosperous, glamorous, and even indulgent city, Las Vegas is known for their booming night life and tourism industry. Shutting down entire industries overnight, the pandemic has caused an economic rift in the city that no one saw coming. Robert Davis explains that even after a move to gradually re-open after the initial shutdown, it has been difficult to combat the overwhelming low number of visitors. According to the Las Vegas Convention and Visitors Authority, the number of visitors from January through August 2020 fell to 12.7 million from 28.4 million compared to the previous year. In addition, Las Vegas, the most populous city in the state of Nevada, has suffered disproportionately from job losses due to their heavy reliance on travel, entertainment, and dining.
The Impact on the Housing Market
Every housing market has its own cycle, and while Southern Nevada was due for a slowdown, the pandemic has only further accelerated it. As Robert Davis explains, the housing market was growing at a rapid pace before COVID-19 washed over Las Vegas. With thousands of layoffs and furloughs taking place over the past year, he claims that many residents were struggling to stay afloat. However, despite the economic and social challenges faced by residents, the housing market seems to be booming.
The initial shock of the pandemic impacted housing markets around the world. In a wave of uncertainty, both buyers and sellers remained cautious. However, today, Las Vegas is riding a hot streak of record prices and rising sales in spite of the economic conditions. Robert Davis explains that the housing market and broader economy are now moving in different directions. With low mortgage rates likely to continue well into 2021, payments have become increasingly affordable which has kept the demand strong. Across the United States, home sales are forecasted to rise 7 to 10 percent in 2021 is the current momentum continues.
With the primary drivers of Las Vegas’ economy rapidly diminished, it will likely take some time for the industry to recover. Robert Davis explains that unfortunately, tourism is likely going to be one of the last things to recover in Las Vegas. Despite visitation being down to levels the state hasn’t seen since 1993, Robert Davis, a resident for over 17 years, is confident that Las Vegas will bounce back stronger than ever.