Las Vegas Real Estate Market – after Gulf Coast Storm
Some displaced families from New Orleans may raise an added opportunity for the Las Vegas Valley real estate industry. This was after storm Katrina hit the New Orleans area, leaving around 200,000-plus homes beyond repair. Analysts pointed out that this could affect the availability and cost of housing in Las Vegas. It was projected that in two or three months, thousands of these displaced residents will find relocation in progressive markets such as Las Vegas.
These families will surely search for work availability, according to Joe Reel, an economist at the Nevada Department of Employment, Training and Rehabilitation.
The influx of labor could in effect boost affordable housing submarkets. In short-term housing or extended-stay hotels, business could become more alive at this point. Investors that still have houses they could not flip may finally find people interested to rents these units. These demands for housing could push the pricing a bit.
Steve Bottfield, an analyst at a company Marketing Solutions, pointed out that the relocation phase from Southeast to Southwest should last six to nine months, and then slacken as the rehabilitation and rebuilding at the Gulf Coast also create jobs. Some of these jobs would be in construction, which in turn would lessen the already tight supply of labor in the area. This scenario would make labor expensive. This projection though may just have a slight effect because, in past scenarios, rebuilding does not usually happen after a couple of years.
Projected effects on the prices for construction materials will also be varied. In the short term, costs of some materials will fall. Demand for concrete will see a decline due to canceled projects in the Gulf Coast. The storm also blew down thousands of trees which should be harvested quickly, which would mean, driving down lumber prices in the soonest time.
These families will surely search for work availability, according to Joe Reel, an economist at the Nevada Department of Employment, Training and Rehabilitation.
The influx of labor could in effect boost affordable housing submarkets. In short-term housing or extended-stay hotels, business could become more alive at this point. Investors that still have houses they could not flip may finally find people interested to rents these units. These demands for housing could push the pricing a bit.
Steve Bottfield, an analyst at a company Marketing Solutions, pointed out that the relocation phase from Southeast to Southwest should last six to nine months, and then slacken as the rehabilitation and rebuilding at the Gulf Coast also create jobs. Some of these jobs would be in construction, which in turn would lessen the already tight supply of labor in the area. This scenario would make labor expensive. This projection though may just have a slight effect because, in past scenarios, rebuilding does not usually happen after a couple of years.
Projected effects on the prices for construction materials will also be varied. In the short term, costs of some materials will fall. Demand for concrete will see a decline due to canceled projects in the Gulf Coast. The storm also blew down thousands of trees which should be harvested quickly, which would mean, driving down lumber prices in the soonest time.
posted by realestatevegas | 10:17 AM
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