NV Taxable Sales Jump Again

Nevada taxable sales jumped 10.4% in September YOY, as all but three counties had an increase from the previous year--Washoe, Nye, and Lincoln. Clark County had a 10.5% YOY increase, as clothing stores and food services leaped 19.6% and 17.3% respectively.

Although Nevada's September taxable sales are impressive, pre-recession highs tower above recent levels; however, Nevada taxable sales have improved significantly from the 2009 low. We expect improvement in taxable sales in the Silver State to continue in the coming years.

NV Bankruptcys Fall Slightly

The number of Nevada residents filing bankruptcy, the last resort for many burdened by financial woes, is tapering somewhat from early 2010 highs. Nevada had 2,247 filings in August 2011 compared to 2,596 in August 2010--down 13.4% YOY.



Filings for bankruptcy in Nevada peaked in FY 2010 with 30,352 total filings and dropped 7.8% to 27,051 in FY 11. FY 12 is on track to be lower than FY 11.

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Nevada Gaming Revenue Dips

Gaming revenue in Nevada was down 6.1% in August from the same month the year before as Clark County and Washoe County (representing 88% of Nevada's population) fell 6.7% and 9.5%, respectively. The Boulder Strip in Southern Nevada and South Lake Tahoe in Northern Nevada were the only major gaming areas with YOY increases.


August's revenue was up 4.7% from August 2009 as Nevada creeps out of recession woes.  Although, August's gaming revenues disappoint, revenues continue to trend upward from 2009 lows.

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McCarran Airport Volume Continues Upward Trend

McCarran Airport passenger volume increased 4% in August from the same month a year ago--solidifying the YOY increases that began in January of this year. U.S. Airways and Continental Airliners saw the largest YOY percent increase in passenger volume with 15.5% and 10% respectively.


McCarran Airport passenger volume is up 3.9% this year-to-date with just over 27.6 million passengers through August.

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Nevada Employment Drops (a Bit More)

The number of people employed in Nevada fell 5,963 or .5% in July from the previous month according to Nevada's Department of Employee Training and Rehabilitation Research and Analysis Bureau--the second declining month since May 2011. Among Nevada industry sectors, 1,300 jobs were lost in professional and business services alone. The number of Nevadans employed in July was 4,620 above January 2011's recent low.



Leisure and Hospitality, the largest sector in Nevada's economy, neither hired nor fired in July 2011 as compared to the previous month. Recent increases in the Silver State's visitor volume has been supportive of the hotel and casino industry.

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Las Vegas Real Estate Update

The percentage of homes sold in Las Vegas, which were on the market less than 60 days, was 65.5% in July of this year--as compared to homes 61-120 days on the market at 20%, and 121+ days on the market at 14.5%. In July 2007, homes less than 60 days were 51.1%, 61-120 days were 29.8%, and 121+ were 19.1%. Bank repos, investors, and low home prices are likely the cause of the shorter time periods homes remain on the market as a greater percentage of homes are are sold within 60 days.


New and existing median home prices continued to slide in Clark County for July. Median new home prices fell only .9% YOY, or $1,700, while existing home prices fell 10.9%, or $13,500 YOY for July. The lack of employment throughout Clark County (unemployment currently at 14.0%) continues to suppress local demand for home ownership and places additional downward pressure on home prices.

President Obama and many presidential hopefuls are pushing job creation at the center of their early campaigns.

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Nevada Medical Profession Count

The number of active licensed medical doctors practicing in Nevada has risen to 4,628 in 2010--up 31.4% from 2001, while the population has increased 35.1% during the same period. Physician Assistants have increased 145% since 2001 as the profession has become more recognized.

Personal finances play a part in the demand for medical doctors. Increasing insurance premiums and tightening pocket books may cause people to delay or forgo doctor visits. As the new health care overhaul matures, it is uncertain how many doctors Nevada will need per capita.

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NV Employment Slides in June

Nevada lost 6,209 jobs in June from the previous month according DETR's (Nevada Department of Employee Training and Rehabilitation) latest report. A large portion of the drop came from the fall of local government employment--down 3,100 in June from the previous month and trade, transportation, and utilities employment--down 2,300 during the same period. Hotel employment increased by 3,100 and business services employment increased by 1,600 in June from the previous month.

The unemployment rate in each Nevada county fell in June from the year before. Current unemployment rates range from 17.3% in Lyon County to 6.4% in Lander County. Nevada's unemployment rate inched up .3 percentage points to 12.4% in June from the month before while the U.S. unemployment rate increased .1 percentage point to 9.2% during the same period.

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Gaming Revenue Jumped in May

Gaming Revenue from the Las Vegas Strip leaped 16.2% in May from the year before--the third highest May gaming revenue since 1998 and the highest month since January 2008. Gaming revenue was helped by baccarat winnings and the World Boxing Champion Manny Pacquiao fight at the MGM Grand Garden Arena.



May's gaming revenue jump helped Nevada by lifting the Silver State's FYTD revenue 2.5% from the previous FYTD.

More Nevada Residents Are Renting

More Nevada residents are renting their homes compared to ten years ago. North Las Vegas was hit the hardest with a 7.6 percentage point increase in renters from a decade earlier, while Henderson followed with a 4.7 percentage point increase from the decade before. All cities (with at least 50,000 people) in Nevada except Reno experienced a rise in renters--Reno renters fell a half of a percent over the past ten years. According to census data, 34.9% of homes were rented in 2010 nationally, compared with 33.8% in 2000.

Taxable Sales in Nevada jumped 9.6% in March from the same month a year ago. Motor vehicle and parts dealers surged throughout the Silver State in March by 15% YOY, while the largest sector, food service and drinking places, jumped 8% YOY. Nevada's Taxable Sales were up 5.6% in March this FYTD (fiscal year-to-date, July 2010 through March 2011) as compared to the previous FYTD.

Clark County Taxable Sales also jumped 9.6% YOY as accommodations leaped 28.7% and food services and drinking place increased by 9.6% YOY. Clark County is up 3.7% this FYTD compared to the previous FYTD.

Washoe County Taxable Sales increased by 2.1% YOY, as motor vehicle and part dealers and accommodations jumped by 18.2 % and 26.3% respectively. Washoe County is up 1.0% this FYTD compared to the previous FYTD.

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Nevada Gaming Revenue Increases

Nevada's gaming revenue increased 5% to $958 million in March from the same month a year before--the first YOY increase since October 2010. The Las Vegas Strip leaped by almost 13% YOY, pulling Nevada's gaming revenue higher.

Where is the Gaming Revenue Growth?--Macau!

Gaming, regarded as the engine of Nevada's economy, is one of the closest watched indicators in Nevada. Any sizable increase or decrease in revenue could potentially have dramatic and lasting affects on local employment and economic growth. During 2005-2007, Nevada saw monthly gaming revenue lift above $1 billion each month--a great achievement; however, Nevada's gaming revenue has yet to fully recover from the Great Recession and reach the $1 billion a month mark.


In recent years, Macau, China has emerged as a gambling hot spot in the Asia-Pacific region. The Las Vegas Sands Corporation, MGM Resorts International, and Wynn Resorts Limited, among others have diversified their holdings to include properties in Macau. Since January 2009 (when we have records of Macau gaming revenue) Macau has eclipsed Nevada in gaming revenue and growth. The three Nevada entities participating in Macau's market have benefited significantly from their Macau ventures. Macau's monthly gaming revenue is currently 3 times that of Nevada's--with no signs of slowing down.  It appears Macau will continue to dwarf Nevada's gaming industry for sometime to come.  

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Nevada Taxable Sales Climb Higher

Nevada Taxable sales increased by 4.3% in February from the same month a year ago, as all but Churchill, Washoe, Douglas, and Lander counties saw growth. February is Nevada's eighth month of YOY consecutive increases. Within Clark County, motor vehicle & parts dealers grew by 20.2%, and clothing & clothing accessory stores grew by 12.9%.

Taxable Sales in Nevada were 5% higher for February this fiscal YTD, as compared to the previous fiscal YTD. Clark County and Washoe County (the two largest economic counties in the state) increased by 2.9% and .9%  respectively this fiscal YTD.

Job Growth Comes to Nevada!

According to the Bureau of Labor Statistics, 10,300 more people were working in Las Vegas in March compared to the month before. The increase in employment is partially due to jobs growth in hotels & gaming, service industries, and education & health services. Construction employment continues to fall with 57 thousand currently employed--down from 61 thousand the year before.


Nevada's unemployment rate fell to 13.2%--down from 13.6% in February as many unemployed workers found jobs. As jobs continue to improve in the U.S. and locally in Nevada, growth is likely to follow.

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Gaming Revenue--Not All Bad News!

February 2011 was not the best month for gaming. Nevada gaming revenue fell 6.8% in February YOY. The Las Vegas Strip and downtown Las Vegas fell 9.6% and 6.2%, respectively--pushing Clark County into a 7.0% YOY decline. Washoe County fell 8.6%, with Sparks, South Lake Tahoe, and the balance of county each with double digit YOY declines.

Gaming revenue on the Las Vegas Strip improved from FY09; however, it failed to match the spike it had in FY10. The Chinese New Year, which landed on February 3rd in 2011, has helped gaming revenue in years passed, but it wasn't enough to push February's revenue higher than 2010.  The good news for the Las Vegas Strip is FYTD 2011 gaming revenue is 2.3% higher than FYTD 2010.  

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New Business Entity Filings are Increasing

New business entity filings in Nevada, as recorded by the Secretary of State Ross Miller's Office, shows positive year-over-year growth starting in December 2010--a much needed improvement from the significant decline from 2007 to late 2010. It is unclear how many jobs will be created from an increase in new business entities; however, it's a positive sign to see the number of new ventures increase, which could contribute to job growth throughout Nevada.

It's interesting to see the shift from corporation filings to L.L.C. (Limited Liability Company) filings over the past few years as people utilize the different tax and corporate structure of L.L.Cs.

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Gasoline Prices: How High Can They Go?

Gasoline prices have been everything but stable during the past few years. Since early 2009, Nevada residents enjoyed gas prices at or below $3/gallon. Because of the unrest in Egypt, Libya, and potentially Saudi Arabia, fear of oil supply disruption pushes market prices higher.


According to the United States Energy Information Administration, the end cost of a gallon of gasoline has increased due to crude oil price spikes, while taxes, distribution & marketing, and refining have remained relatively fixed. Time will only tell if the short-term unrest in the middle east calms or becomes even more escalated. In the long-term, we can expect a steady increase in the price per gallon as the population in the modernized industrial world increases and fuel alternatives remain economically inefficient.


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Nevada Employment--Still in the Trough!

Brookings released their quarterly Mountain Monitor report covering "the six-state Mountain region’s 10 major metropolitan areas that lie within the 100 most populous nationally." According to this report, Phoenix-Mesa-Glendale, AZ area's employment improved the most since reaching their relative trough. Las Vegas, NV, Boise City, ID, and Albuquerque, NM, have yet to break out of their relative troughs--in other words, employment is still declining. It is uncertain how much further employment will decline before these three areas see employment gains.



The Top 100 Metropolitan areas show a slight improvement from the aggregate trough, supporting the recent Bureau of Labor Statistics positive jobs reports. The Bureau of Labor Statistics reported that over the past five months 671,000 jobs have been created. We expect those cities currently in their respective troughs to gain traction as the national economy continues to improve.

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Negative Home Equity--Where Does NV Sit?

When CoreLogic released their March 8th report, it was no surprise to see residents who hold a mortgage in Nevada on average are significantly underwater; or in other words, their mortgage exceeds the property value. Interestingly, Nevada is the only state where total residential home mortgages exceed total property values--giving some residents an incentive to "walk away" from their mortgages. According to this report, Nevada has a massive 65% of its mortgaged properties underwater, followed in second place by Arizona, with 51% and a national average of 23%.

The national loan-to-value total is 70%, with mortgaged properties having a market value of $12.7 trillion and mortgages totaling $8.9 trillion (click table to enlarge).  The Federal Reserve reports that approximately one-third of all U.S. homes have no mortgage.

State-Local Tax Burdens on NV Residents Decline!

The Tax Foundation, an organization dedicated to educate taxpayers on the tax burden each state's residents bear as a percent of their income, released their newest report in February. It is good to see Nevada has maintained it's competitive advantage compared to the U.S. average. 


One of the attractive attributes that draws people and businesses to Nevada is its low state and local taxes. Since 1977, Nevada has always been one of the top five states which provides the lowest tax burden to its taxpayers. We welcome the news that in 2009 Nevada's state and local tax burden ranking improved to become the 2nd lowest among the fifty states--beaten only by Alaska! (but it is a little colder there!)

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Nevada Census

Nevada's population increased by 57,470 from 2009 to 2010--a surprising gain considering Nevada's high unemployment and sluggish economy. During the last decade, Nevada averaged 3.1% annual population growth as compared to the national average of .95%.

The largest growth during the last ten years took place in Lyon County, which grew from 34,501 people in 2000 to 51,980 people in 2010. Esmeralda County shrank by the largest percent, but by the lowest amount--due to less than 1,000 people living in the entire county.


Within Nevada's population growth, Asian and Native Hawaiian & Pacific Islander populations doubled in size during the past ten years. Hispanic and African Americans also increased substantially, while the White population increased by a meager 19%.

The future of Nevada's economy is uncertain, but the national economic recovery will likely spill over into Nevada and buoy up our tourism industry.

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