Employment Growth Driving Demand For Housing

The record-breaking demand for Las Vegas homes is being driven by strong job growth, according to Restrepo Consulting Group principal John Restrepo. "Clark County job growth pushed the ratio of employment to building permits to 1.46 in October, compared with 0.83 at the end of 2003 and a norm of 1.26," said Restrepo. "Employment grew by 47,500 while 32,156 housing permits were issued during the same period."

With the expectation of the employment-to-permit ratio continuing to climb in 2005, it is anticipated that the Las Vegas real estate market will move from low mortgage rate-driven demand to employment-driven demand. While new residential construction may slow a bit in Clark County in 2005, continued strength in sales should remain evident, according to Restrepo.