Southern Nevada is seeing strong growth in construction employment and predictions are positive for the nonresidential construction industry in 2016.
According to a report by the Associated Builders and Contractors, the industry’s recovery should continue through next year due to strong consumer spending, despite a weak global economy.
According to the Association’s numbers, Nevada saw a 19 percent rise in employment in October of this year over last. That increase brought 8,400 jobs to the Southern Nevada area from October 2014 to October 2015.
“As the midphase of the economic recovery continues, ABC forecasts growth in nonresidential construction spending of 7.4 percent next year along with growth in employment and backlog,” said ABC Chief Economist Anirban Basu. “The midphase of the recovery is typically the lengthiest part and ultimately gives way to the late phase, when the economy overheats. The current recovery could end up challenging the lengthiest recovery in U.S. history, which lasted 120 months between March 1991 and March 2001.”
Job growth has been reported across many parts of the U.S., according to a report by The Associated General Contractors of America. Out of 358 metro areas, 180 saw a rise between October 2014 and October 2015. Association officials said the numbers were going up because of growing demand but noted that labor shortages could be impeding employment growth in some part of the country.
“Contractors are adding workers in many part of the country again, which is consistent with the robust growth that is occurring in construction spending,” said Ken Simonson, the association’s chief economist. “But job gains would be even more widespread if contractors could find enough qualified experienced craft workers and supervisors as well as new entrants to the industry.”
Contractors are also becoming more confident in the new climate: “ABC’s leading indices each suggest that 2016 will be another solid year for the typical U.S. nonresidential construction firm,” said Basu. “ABC’s Construction Confidence Index encompasses expectations with respect to hiring, profit margins and projected sales growth. According to the most recent survey, overall contractor confidence has increased with respect to both sales (67.3 to 69.4) and profit margins (61 to 62.9).
There will be some potholes in the road for the economy overall, ABC forecasts.
“A weak global economy and stronger U.S. dollar will prevent the U.S. economy from surging ahead in 2016,” said Basu. “Stakeholders can expect a 2.2 percent rate of growth (or similar to that) next year.”
Homebuilders target Preservation Area
Presidio Residential Capital and Summit Hones of Nevada are planning a nine-home community inside a Las Vegas rural neighborhood preservation area at Duneville Street and West Teco Avenue. The project is pegged to break ground in April of 2016.
“We are excited to partner with Summit Homes Nevada on another promising community,” said Paul Faye, asset manager at Presidio Residential Capital. “Nathan White and his team have been fantastic to work with and we expect to see similar positive results with this new acquisition.”
The community will have three floor plans and prices ranging from $460,000 to $530,000. Two of the plans will be single story with “pop top” options that would add minimal living space to a second story. The final design is a two-story home up to 4,200 square feet. Every home will be built on a 20,000-square-foot lot. Amenities include granite countertops, paver driveways, large windows and doors, large kitchens, three-car garages and energy-efficient appliances and features. There are also optional features including casitas and RV gates. Future residents will also be able to bring their horse.
“Las Vegas’s RNP designation requires large lots and fewer homes in keeping with the rural neighborhood feel,” said Nathan White, division manager for Summit Homes of Nevada. “The huge lots make this community desirable for homeowners with horses and RVs. Typical new home subdivision improvements, such as sidewalks and streetlights, are not allowed in the area.”
Top Nevada Realtors honored
The Nevada Association of Realtors named Kevin Sigstad as its 2015 Nevada Realtor of the Year at its annual awards event at Red Rock Resort on Dec. 11. Realtors from around the state were also recognized.
Sigstad is a longtime Reno Realtor. He also served as president of NVAR and as president of the Reno-Sparks Association of Realtors. He is at REMAX Premier Properties in Reno.
Sherrie Cartinella was honored with the Nevada Distinguished Realtor Award for ongoing consistent service to NVAR and the profession; Pam Reese received the Active in Politics Award for government affairs advocacy and activities; Rosa Herwick received the Joe Nolan Award, which recognizes spirit, passion and professionalism in serving fellow realtors in Nevada; and Greg Martin received the Realtor Achievement Award for outstanding services to local and state associations.