12,000 New Jobs in Las Vegas

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Services for Real Estate Pros with FHA Loan, VA Loan, Jumbo Loan,FHA Loans,VA Loans,Jumbo Loans

The only thing better for an economic recovery than an infusion of government subsidy is a ton of new jobs, or in this case six-tons. According to a recent article, MGM Mirage & and Infinity World Development Corp, a subsidiary of Dubai World, will be opening CityCenter this December on the Las Vegas Strip. They expect to fill 12,000 permanent positions.

Normally, each "new job" has a multiplying factor - anywhere from 1.5 to 5 - to account for all the ancillary support jobs that are needed to support the new workers. Let's be conservative and use 1.5 as the factor. So, we're are looking as something like 18,000 jobs. On the one hand, that's great! On the other hand, that's only about 2% of the local working population when the area currently is suffering 13.4% unemployment. And, it is unclear how many jobs are to be canibalized.

Is this enough to stop the downward spiral, initiate a virtuous cycle, and turnaround the housing situation in Las Vegas? The answer to that question lies in the future. However, the reason to bring this up now is that you don't know whether or not you've reached bottom until after the fact.

Currently there are many Las Vegas investment properties with strong positive cashflow - properties selling from 50-90 thousand while asking rents are $1100-1300 / mo. and above.   This is a great cashflow play (even considering vacancies), and we can let appreciation and inflation take care of itself.  Currently FinestExpert.com shows hundreds of Las Vegas homes for sale with a FE-Score of 850+ and a Cash-on-Cash Return (CCR) of over 15%.  And of course, if properties are good for a landlord to own, then in the rent vs buy equation, they are good for the 1st time homebuyer as well. 

Comments (4)

Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

That sounds like a good shot in the arm for Vegas.

Hopefully that project will add stimulus.

Sep 22, 2009 02:26 PM
Jeffery Griffin
Jeff Griffin LLC - Wailuku, HI
Broker Owner

good news for LV

Sep 22, 2009 02:31 PM
Gynell Stalford - Texas Cert. Appraiser *****FHA & FLAGSTAR APPROVED*****
Metroplex Appraisal Services - The FHA Appraisal Shop - Frisco, TX

Robert, last I read on that earlier in the year was Dubai World was not following up with their part of the payment and MGM was having to fund the deal for several months in a row and the project was on shaky ground. Their stocks have come back up a bit so thats positive. Definitely a good thing if everything goes as planned. I've been to the City Center in Qatar. It was fabulous.

Sep 22, 2009 02:53 PM
Not a real person
San Diego, CA

I have a friend working on City Center over there. He's quite happy to have a good job right now.

Sep 24, 2009 05:58 PM