Since the beginning of 2023, Las Vegas’ economy has expanded 3.8 percent, outpacing the national average. The metro’s economy is largely influenced by the leisure and hospitality sector, which added 16,200 net employees from January to October 2023.
Tourism has taken off in Las Vegas in 2023, setting new post-pandemic records in March. Hotel occupancy rates reach 90.5 percent on the Las Vegas Strip. The addition of new entertainment venues and events has been a part of the success of the Las Vegas economy.
Over the past year, Las Vegas has added a new luxury hotel and state-of-the-art entertainment arena. The Sphere, a revolutionary venue covered completely by over a million LED lights, was completed in September and is projected to have an annual economic impact of $730 million.
The newest addition to the Las Vegas Strip was the Fontainebleau Las Vegas hotel, which had its grand opening in mid-December. The hotel features 3,644 hotel rooms, 550,000 square feet of convention space, and a 173,000 square-foot casino floor. About 5,800 employees were hired, furthering the leisure and hospitality sector’s impact on the local economy.
Beyond new developments along the Las Vegas Strip, the city is home to the Formula 1 Las Vegas Grand Prix and will be hosting Super Bowl LVII. In November, Las Vegas held its second annual Formula 1 race, which had an economic impact of $1.2 billion and brought in 315,000 visitors. Looking ahead, the economic impact of holding the Super Bowl combined with the Raiders’ season will be over $1 billion.
The thriving economy underpins the turnaround the Las Vegas multifamily market has seen from one year ago. In 2022, there were more move-outs than move-ins, resulting in a negative net absorption of 5,791 units. Fortunately, that is not the case for 2023. Demand has swung back to the positives in the first three quarters of 2023, with 676 net units absorbed.
– Berkadia Research