Las Vegas – a market driven by entertainment, hospitality and retail – has relied on pandemic unemployment benefits, an additional $ 600 weekly unemployment benefit. The additional benefit expired in late July and many Las Vegas residents and homeowners are waiting for a permanent replacement solution. Without it, there could be a decrease in occupancy and an increase in broken leases, especially for the lower end of the housing market.
“The effects were mixed. Interestingly, in the mid-range of over $ 1200 per month to luxury homes over $ 2000 per month, there wasn't much of an impact as most of these tenants were employed during the pandemic and are now working from home. ” Lisa Song Sutton, a Las Vegas-based real estate investor and broker, tells GlobeSt.com. "Unfortunately, the biggest impact has been in lower-priced apartments that cost $ 900 a month or less."
While Congress has not yet passed a permanent replacement plan for expired unemployment benefits, the Federal Emergency Management Agency is providing a temporary benefit of $ 300 per week to fill the gap until a more permanent solution is found. "I think any fund is better than no fund, so $ 300 will help more than $ 0. This is not a long-term solution, however," says Sutton. "It's a small patch on a much bigger problem. The longer our governor keeps the Las Vegas Strip and our most important economic factor, the hotel and bar industries, on a short leash, the worse the economic impact will be."
Sutton says there will likely be ramifications for the Las Vegas housing market without additional incentives. "I think we would have seen more tenants cancel their leases and move early," says Sutton. “Employees from the entertainment industry in particular have been unemployed since mid-March. Some have successfully received unemployment benefits and some have not. "
Additional momentum in the market is needed while the pandemic has an impact on the Las Vegas entertainment and hospitality market. "Our number one thing in southern Nevada is hospitality and tourism," says Sutton. “The longer the Las Vegas Strip is not fully functional and functional due to government regulations, the longer the market will need UE benefits. We have to reopen companies and let people work again. "
The event has already postponed the housing market. "Some complexes near the Strip and in southwest Las Vegas that housed casino industry artists, workers, and technicians have seen an exodus of tenants leaving town," says Sutton. “The reality is that at this point, much of their work and the Las Vegas shows are not supposed to start again for the remainder of 2020. In other complexes in the suburbs, families have tried to give the best they can get used to working from home and teaching at school. "